e6vk
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the
period ending 28th October 2009
GlaxoSmithKline plc
(Name of registrant)
980 Great West Road,
Brentford,
Middlesex, TW8 9GS
(Address of principal executive offices)
Indicate by check mark if the registrant files or will file annual reports under cover Form 20-F or Form 40-F
Form 20-Fx Form 40-Fo
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yeso Nox
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorised.
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Date: October 28th 2009 |
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GlaxoSmithKline plc (Registrant) |
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By: |
/s/ Victoria Whyte
VICTORIA WHYTE
Authorised Signatory for and on behalf of GlaxoSmithKline plc |
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Press Release
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![(GSK LOGO)](u07800u0780001.gif) |
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Issued: Wednesday, 28th October 2009, London, U.K.
Unaudited Results announcement for the third quarter 2009
GSK delivers Q3 EPS of 28.5p before major restructuring*
and dividend of 15p up 7%
- Return to sales growth with Q3 turnover +3% CER; +15% sterling
- Continued improvement expected in Q4 |
Results before major restructuring*
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9 months |
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Q3 2009 |
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Growth |
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2009 |
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Growth |
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£m |
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CER% |
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£% |
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£m |
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CER% |
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£% |
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Turnover |
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6,758 |
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3 |
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15 |
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20,274 |
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(1 |
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16 |
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Earnings per share |
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28.5p |
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(3 |
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13 |
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85.8p |
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(12 |
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10 |
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Total results
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9 months |
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Q3 2009 |
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Growth |
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2009 |
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Growth |
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£m |
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CER% |
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£% |
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£m |
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CER% |
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£% |
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Turnover |
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6,758 |
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3 |
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15 |
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20,274 |
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(1 |
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16 |
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Restructuring charges |
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152 |
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605 |
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Earnings per share |
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26.3p |
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11 |
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31 |
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77.0p |
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(12 |
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11 |
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The full results are presented under Income Statement on pages 7 and 13. |
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* |
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For explanations of the measures results before major restructuring and CER growth, see page 6. |
Summary
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Portfolio diversification and investment in key areas drives return to sales
growth: Emerging Markets (+25%); Japan (+19%) and Consumer Healthcare (+8%) |
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Further growth expected in Q4 2009 including significant sales of influenza products |
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US sales -12% primarily due to continued adverse impact of generic competition |
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Significant progress made to expand new vaccines portfolio:
Cervarix approved in USA and Japan; Pandemrix approved in Europe. Menhibrix filed
in the USA in August; Major new contract secured in Brazil for Synflorix |
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Pipeline momentum sustained with 30 assets in late-stage development:
US approvals of Votrient and Arzerra; US/EU filings of Avodart for prostate cancer
risk reduction and progress made in darapladib and Horizon development programmes |
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Cumulative net cash inflow from operating activities up 10%; Q3 dividend 15p, up 7% |
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EPS before major restructuring 28.5p -3% CER, up 13% in sterling terms |
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Press Release
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![(GSK LOGO)](u07800u0780003.gif) |
GSKs strategic priorities
GSK has focused its business around the delivery
of three strategic priorities, which aim to
increase growth, reduce risk and improve GSKs
long-term financial performance:
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Grow a diversified global business |
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Deliver more products of value |
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Simplify GSKs operating model |
Chief Executive Officers review
The dynamics of GSKs business are changing. We are seeing direct evidence of success
in our strategy to grow and diversify the business away from a dependency on white
pill/western markets. Less than 30% of this quarters sales were generated from these
products and markets compared to 38% in the second quarter of 2008.
This quarters total sales were up 3%, marking a return to growth and reflecting the
reallocation of resources to key investment areas: sales in Emerging Markets were up
25%;
in Japan up 19% and in Consumer Healthcare up 8%.
GSKs Consumer Healthcare performance is especially impressive given it was set
against a backdrop of estimated global market growth of only 1.5%. GSKs OTC, Oral
Healthcare and Nutritional Healthcare businesses grew 9%, 10% and 4%, respectively, in
the quarter. We are continuing to look for further investment opportunities, and last
month for example signed a new agreement with a leading distributor to launch Lucozade
across China.
Sales in Emerging Markets now represent 14% of pharmaceutical turnover compared to
12% this time last year. Growth in these markets is being driven both organically,
notably through Seretide, Augmentin and vaccines, and through newly acquired products,
which contributed over £35 million this quarter.
Further progress in building our long-term presence in these markets was demonstrated
with two major new partnerships this quarter. In Brazil, we signed a 10-year agreement
with the Fiocruz Foundation to supply Synflorix; whilst in China, we reached an
agreement with the Walvax Biotech Company to develop paediatric vaccines.
In Japan, new product momentum continues. Earlier this month Cervarix was approved and
we submitted a regulatory application for Promacta. Both of these are firsts in
their class and this is indicative of the innovation on which we are building this
business. We have now received regulatory clearance for 4 major new products this year
Allermist, Avolve (Avodart), Cervarix and Tykerb.
Vaccines sales were lower this quarter, in part due to phasing of shipments. As this
business continues to grow, I expect that the volatility associated with the timing of
large tenders and bulk shipments will be a recurring factor in GSKs reporting. Year
to date sales were up 8%
to nearly £2.2 billion and represented 11% of Group turnover.
As I said earlier this year, the US marketplace is changing and there are many
dynamics at play, including the progress of healthcare reform and increased pricing
pressure, to which we are actively responding.
We have made significant changes to adapt our US business and continue to manage a
major transition to our US product portfolio. Overall, the number of products facing
generic competition is reducing, although 2010 will remain challenging as the impact
of expected generic competition to Valtrex is absorbed. At the same time, we are
rapidly increasing the number of new products.
In the last two weeks, we have received US approvals for Cervarix, Votrient and
Arzerra. This quarter 2 key FDA filings were also completed: Avodart for prostate
cancer risk reduction and Menhibrix, a vaccine to protect against meningococcal
disease and Haemophilus influenzae type b (Hib).
Issued: Wednesday, 28th October 2009, London, U.K.
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Press Release
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![(GSK LOGO)](u07800u0780003.gif) |
It is clear that improvements in performance for our US business will take time;
however, I do expect that the changes within our product portfolio and the outputs of
our restructuring programme will become increasingly evident.
In Europe, we received approval for Pandemrix, our pandemic H1N1 vaccine. This follows
more than 10 years of investment and effort into research of pandemic influenza. To
date we have announced orders worldwide for approximately 440 million doses of the
vaccine.
The positive impact on sales growth of the acquisitions made over the last 12 months
is becoming apparent. This quarter, Stiefel dermatology products
contributed more than
£100 million of sales.
To improve transparency and understanding of our increasingly diversified business, we
have decided to make some changes to our financial reporting next year. From the first
quarter
of 2010, we will report additional P&L information for all of our major business units.
Our strategic priorities are designed to drive both turnover and profit growth and we
must now translate the good progress we have made at the sales level into improved and
sustainable earnings growth.
Cost containment is therefore very high on my agenda. Our restructuring programme to
deliver £1.7 billion in annual savings is making good progress and cumulative
annualised cost savings now amount to £1 billion. This programme is helping to improve
productivity and support investment in our strategic priorities.
Return on investment and effective deployment of capital are critical measures in the
investment decisions we are making and in the management of our business. This is
evident
in our allocation of SG&A expenditure. For example, in the third quarter whilst SG&A
spend grew 12% in key investment areas, expenditure was actively contracted in US and
European pharmaceutical markets by 6%.
To discharge risk in R&D we are consciously assessing resource and allocation of
investment. This quarter, darapladib, a potential new treatment for atherosclerosis,
passed a key checkpoint in its phase III development programme by meeting interim
safety criteria in the STABILITY trial. Development of this asset will therefore
continue as planned with another large-scale CV outcome study due to commence shortly.
We also started phase III trials for project Horizon in COPD this month.
In the same manner, our decision to terminate development of Rezonic was ultimately
dictated by where we could best allocate R&D and launch investment to deliver success.
Sustained cash generation is also an important measure of GSKs progress. Cumulative
net cash inflow from operating activities was up 10%. This has further supported our
progressive dividend policy. The Q3 dividend is 15p, up 7%.
In conclusion, and as I have previously described, our third quarter performance
reinforces our expectations of an improved performance for GSK in the second half of
2009. In the fourth quarter, I expect further improvement including significant sales
generated from our influenza products.
The delivery of our strategic priorities is required over a multi-year time frame, but
I believe that the progress we have made so far provides us with a strong platform to
realise our
long-term objective of delivering sustainable growth for shareholders.
Andrew Witty
Chief Executive Officer
Video summaries of Andrew Witty discussing todays results are available on www.gsk.com
Issued: Wednesday, 28th October 2009, London, U.K.
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Press Release
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![(GSK LOGO)](u07800u0780003.gif) |
Trading update
Turnover
and key product movements impacting performance Q3 2009
Total Group turnover grew 3%, with pharmaceuticals up 2% and Consumer
Healthcare up 8%. Within pharmaceuticals, a decline in US turnover (-12%) was
offset by growth in Europe (+3%), Emerging Markets (+25%) and Japan (+19%).
Stiefel contributed £111 million to pharmaceutical turnover in the quarter.
Sales of Seretide/Advair grew 5% to £1.2 billion in the quarter. Reported US
sales were down 1% to £587 million. Underlying US growth for the quarter is
estimated to be around 4%, with the difference primarily due to wholesaler
stocking patterns. Total Advair growth was boosted by strong performances in
Europe (+9% to £378 million), Emerging Markets (+25% to
£66 million) and Japan (+32% to £44 million). Elsewhere in the respiratory
portfolio, sales of Ventolin (+28% to £110 million) continued to be strong, in
particular benefiting from successful retail contracting initiatives in the
USA.
Relenza sales were £182 million reflecting continued orders from Governments
for pandemic stockpiling. Other strong pharmaceutical performances included
Avodart (+14% to
£131 million), Lovaza (+27% to £111 million) and Tykerb (+54% to £46 million).
Vaccine sales declined 2% in the quarter to £802 million. Performance
benefited from strong growth of Rotarix (+92% to £84 million) and Boostrix
(+55% to £39 million) and from the start
of Synflorix (sales of £13 million). These were offset, however, by sales
declines of Infanrix/Pediarix (-10%) which continues to be impacted by
increased competition in the DTPa segment in the USA, and lower sales of
Hepatitis vaccines (-12%) which resulted from lower sales to the military and
return of competitor supply in the USA. Sales of Fluarix/Flulaval declined 14%
to £147 million primarily as a result of lower sales in the USA. Cervarix
sales
of £28 million in the quarter were adversely impacted by the timing of tender
shipments in Europe.
Sales of several products continue to be significantly impacted by generic
competition in the USA: Imigran (-74% to £53 million), Lamictal (-21% to £121
million) and Requip (-30% to
£43 million). Wellbutrin XL sales fell 81% to £6 million, reflecting the sale
of the product in the USA to Biovail in Q2.
Total Consumer Healthcare sales rose 8% to £1.2 billion, with growth in all
regions: Europe (+9%), USA (+3%) and Rest of World (+11%).
Oral care sales rose 10% to £375 million, driven by continued strong
performances of Sensodyne (+20%) and denture products Polident, Poligrip and
Corega (+10%). Sales of recently acquired dry mouth treatment Biotene were £7
million in the quarter. Nutritional healthcare sales were up 4%, with growth
of Horlicks (+13%) and Lucozade (+4%) partially offset by a decline in Ribena
sales (-9%) resulting from a reduction in impulse sector demand in the UK.
OTC sales rose 9% to £567 million. Helped by the ongoing launches in Europe,
weight loss treatment alli continues to perform well with sales more than
doubling to £49 million in the quarter. Other strong OTC performances included
Panadol (+7% to £96 million),
Contac (sales more than doubled to £21 million) and Abreva (+36% to £18
million). These were partially offset by a 16% decline in NRT sales resulting
primarily from the comparison
with Q3 2008 which benefited from the stocking for the launch of Nicorette
whitening gum in the USA and the launch of NRT products in Japan.
Issued: Wednesday, 28th October 2009, London, U.K.
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Press Release
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![(GSK LOGO)](u07800u0780003.gif) |
Operating
profit and earnings per share commentary Q3 2009
Results before major restructuring
Operating profit before major restructuring for Q3 2009 was £2,223 million, a 3%
decline in CER terms.
Cost of sales was 25.6% of turnover, higher than Q2 2009 and prior year (Q3 2008:
24.8%), principally reflecting the impact of generic competition to higher margin
products in the USA and changes to product mix in the quarter. The company
continues to expect cost of sales to be in the range of 24% to 25% of turnover for
the full year.
SG&A costs as a percentage of turnover increased to 30.5% in the quarter (Q3 2008:
28.3%). The increase over prior year reflected investment in growth markets,
increased pension costs and the consolidation of the Stiefel business for the
first time, partially offset by the benefits of the restructuring programme.
Excluding legal costs of £63 million, SG&A costs were 29.6% of turnover (Q3 2008:
27.3%). The company continues to expect SG&A costs excluding legal charges to be
around 29% of turnover in 2009 (2008: 27.7%).
R&D expenditure was 12.8% of turnover in the quarter, benefiting from a provision
release due to reassessment of a receivable balance in the quarter. Excluding
this item, R&D expenditure was 13.6% of turnover as restructuring savings were
partially offset by increased investment in vaccines. The company now expects
full year R&D costs as a percentage of sales to be broadly in line with 2008
(14.4%).
In the quarter, gains from asset disposals were £17 million (Q3 2008: £21
million), costs for legal matters were £63 million (Q3 2008: £58 million) and fair
value movements on financial instruments were £nil (Q3 2008: £37 million charge).
Other operating income in the quarter was £123 million comprising royalty income of
£103 million which included a royalty receipt of £29 million following settlement
of a royalty dispute in the quarter (Q3 2008 royalty income: £80 million), a £79
million gain resulting from the same settlement and asset disposals of £17
million, offset by an £83 million equity investment impairment.
EPS before major restructuring of 28.5p decreased 3% in CER terms (a 13% increase
in sterling terms) compared with Q3 2008. The favourable currency impact of 16
percentage points reflected the weakness of Sterling against most major
currencies, compared with the same period last year.
Total results after restructuring
Operating profit after restructuring for Q3 2009 was £2,071 million, a 7%
increase in CER terms. This included £152 million of restructuring charges
related to the current restructuring programme (Q3 2008: £322 million); £50
million was charged to cost of sales (Q3 2008:
£130 million), £82 million to SG&A (Q3 2008: £157 million) and £20 million to
R&D (Q3 2008: £35 million). EPS after restructuring of 26.3p increased 11% in
CER terms (a 31% increase
in sterling terms) compared with Q3 2008.
Cash flow and net debt
Net cash inflow from operating activities in Q3 2009 was £2,081 million, up 10%
in sterling terms. For the nine months net cash inflow from operating
activities was £5,580 million, a
10% increase in sterling terms over the previous year. This cash inflow was
used to fund net interest payable of £309 million, capital expenditure on
property, plant and equipment and intangible assets of £1,232 million,
acquisitions of £2,677 million and the dividend paid to shareholders of £2,290
million.
Net debt at 30th September 2009 of £10.2 billion, comprising gross debt of
£16.9 billion and cash and liquid investments of £6.7 billion, remains at the
same level as at 31st December 2008.
At 30th September 2009, GSK had short-term borrowings (including overdrafts)
repayable within 12 months of £1.9 billion with no further borrowings repayable
in the subsequent year.
Issued: Wednesday, 28th October 2009, London, U.K.
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Press Release
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![(GSK LOGO)](u07800u0780003.gif) |
On 6th July 2009, GSK issued a 1.6 billion bond under its Euro Medium Term
Note programme. The bond matures on 6th July 2015 and has a coupon of 3.875%.
Dividends
The Board has declared a third interim dividend of 15 pence per share (Q3 2008:
14 pence). The equivalent interim dividend receivable by ADR holders is 49.002
cents per ADS based on an exchange rate of £1/$1.6334. The ex-dividend date
will be 4th November 2009, with a record date of 6th November 2009 and a
payment date of 7th January 2010.
Currency impact
The Q3 results are based on average exchange rates, principally £1/$1.62,
£1/1.14 and £1/Yen 149. The nine month exchange rates are given on page
27. The period end exchange rates were £1/$1.60, £1/1.09 and £1/Yen 143.
If exchange rates were to hold at these period end levels for the rest of 2009,
the estimated positive impact on full year 2009 sterling EPS growth before
major restructuring would be around 15 percentage points.
GlaxoSmithKline
(GSK) together with its subsidiary undertakings, the Group
one of the worlds leading research-based pharmaceutical and healthcare
companies is committed to improving the quality of human life by enabling
people to do more, feel better and live longer. GlaxoSmithKlines website
www.gsk.com gives additional information on the Group. Information made
available on the website does not constitute part of this document.
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Enquiries:
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UK Media
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Philip Thomson
Claire Brough
Alexandra Harrison
Stephen Rea
Gwenan White
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(020) 8047 5502
(020) 8047 5502
(020) 8047 5502
(020) 8047 5502
(020) 8047 5502 |
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US Media
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Nancy Pekarek
Mary Anne Rhyne
Kevin Colgan
Sarah Alspach
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(919) 483 2839
(919) 483 2839
(919) 483 2839
(919) 483 2839 |
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European Analyst / Investor
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David Mawdsley
Sally Ferguson
Gary Davies
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(020) 8047 5564
(020) 8047 5543
(020) 8047 5503 |
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US Analyst / Investor
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Tom Curry
Jen Hill Baxter
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(215) 751 5419
(215) 751 7002 |
Results before major restructuring
Results before major restructuring is a measure used by management to assess
the Groups financial performance and is presented after excluding
restructuring charges relating to the Operational Excellence programme, which
commenced in October 2007 and the acquisitions of Reliant Pharmaceuticals in
December 2007 and Stiefel in July 2009. Management believes that this
presentation assists shareholders in gaining a clearer understanding of the
Groups financial performance and in making projections of future financial
performance, as results that include such costs, by virtue of their size and
nature, have limited comparative value.
CER growth
In order to illustrate underlying performance, it is the Groups practice to
discuss its results in terms of constant exchange rate (CER) growth. This
represents growth calculated as if the exchange rates used to determine the
results of overseas companies in Sterling had remained unchanged from those
used in the comparative period. All commentaries are presented in terms of CER
growth, unless otherwise stated.
Brand names and partner acknowledgements
Brand names appearing in italics throughout this document are trademarks of GSK or
associated companies or used under licence by the Group.
Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the US Private Securities Litigation Reform Act
of 1995, the company cautions investors that any forward-looking statements or
projections made by the company, including those made in this Announcement, are
subject to risks and uncertainties that may cause actual results to differ materially
from those projected. Factors that may affect the Groups operations are described
under Risk Factors in the Business Review in the companys Annual Report on Form
20-F for 2008.
GlaxoSmithKline plc, 980 Great West Road, Brentford, Middlesex TW8 9GS, United Kingdom
Registered in England and Wales. Registered number: 3888792
Issued: Wednesday, 28th October 2009, London, U.K.
6
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PRESS RELEASE
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![(GSK LOGO)](u07800u0780003.gif) |
Income statement
Three months ended 30th September 2009
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Results |
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Results |
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before major |
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Major |
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before major |
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Major |
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restructuring |
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restructuring |
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Total |
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restructuring |
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restructuring |
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Total |
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Q3 2009 |
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Growth |
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Q3 2009 |
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Q3 2009 |
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Q3 2008 |
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Q3 2008 |
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Q3 2008 |
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£m |
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CER% |
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£m |
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£m |
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£m |
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£m |
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£m |
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TURNOVER |
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6,758 |
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3 |
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6,758 |
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5,882 |
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5,882 |
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Cost of sales |
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(1,732 |
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11 |
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(50 |
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(1,782 |
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(1,460 |
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(130 |
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(1,590 |
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Gross profit |
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5,026 |
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(50 |
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4,976 |
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4,422 |
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(130 |
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4,292 |
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Selling, general and
administration |
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(2,064 |
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9 |
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(82 |
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(2,146 |
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(1,662 |
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(157 |
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(1,819 |
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Research and development |
|
|
(862 |
) |
|
|
(4 |
) |
|
|
(20 |
) |
|
|
(882 |
) |
|
|
(834 |
) |
|
|
(35 |
) |
|
|
(869 |
) |
Other operating income |
|
|
123 |
|
|
|
|
|
|
|
|
|
|
|
123 |
|
|
|
53 |
|
|
|
|
|
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
|
2,223 |
|
|
|
(3 |
) |
|
|
(152 |
) |
|
|
2,071 |
|
|
|
1,979 |
|
|
|
(322 |
) |
|
|
1,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
19 |
|
|
|
98 |
|
|
|
|
|
|
|
98 |
|
Finance costs |
|
|
(199 |
) |
|
|
|
|
|
|
|
|
|
|
(199 |
) |
|
|
(218 |
) |
|
|
|
|
|
|
(218 |
) |
Share of after tax profits of
associates and joint
ventures |
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
|
16 |
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION |
|
|
2,065 |
|
|
|
(5 |
) |
|
|
(152 |
) |
|
|
1,913 |
|
|
|
1,875 |
|
|
|
(322 |
) |
|
|
1,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
(585 |
) |
|
|
|
|
|
|
43 |
|
|
|
(542 |
) |
|
|
(559 |
) |
|
|
62 |
|
|
|
(497 |
) |
Tax rate % |
|
|
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
28.3 |
% |
|
|
29.8 |
% |
|
|
|
|
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE
PERIOD |
|
|
1,480 |
|
|
|
(3 |
) |
|
|
(109 |
) |
|
|
1,371 |
|
|
|
1,316 |
|
|
|
(260 |
) |
|
|
1,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to minority
interests |
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
36 |
|
|
|
29 |
|
|
|
|
|
|
|
29 |
|
Profit attributable to
shareholders |
|
|
1,444 |
|
|
|
|
|
|
|
(109 |
) |
|
|
1,335 |
|
|
|
1,287 |
|
|
|
(260 |
) |
|
|
1,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,480 |
|
|
|
|
|
|
|
(109 |
) |
|
|
1,371 |
|
|
|
1,316 |
|
|
|
(260 |
) |
|
|
1,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
28.5p |
|
|
|
(3 |
) |
|
|
|
|
|
|
26.3p |
|
|
|
25.2p |
|
|
|
|
|
|
|
20.1p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
28.3p |
|
|
|
|
|
|
|
|
|
|
|
26.1p |
|
|
|
25.0p |
|
|
|
|
|
|
|
20.0p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
7
|
|
|
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Pharmaceuticals turnover
Three months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
USA |
|
|
Europe |
|
|
Rest of World |
|
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
Respiratory |
|
|
1,594 |
|
|
|
6 |
|
|
|
744 |
|
|
|
2 |
|
|
|
511 |
|
|
|
7 |
|
|
|
339 |
|
|
|
14 |
|
Avamys/Veramyst |
|
|
31 |
|
|
|
59 |
|
|
|
15 |
|
|
|
8 |
|
|
|
9 |
|
|
|
>100 |
|
|
|
7 |
|
|
|
>100 |
|
Flixonase/Flonase |
|
|
28 |
|
|
|
(21 |
) |
|
|
3 |
|
|
|
(57 |
) |
|
|
9 |
|
|
|
(18 |
) |
|
|
16 |
|
|
|
(7 |
) |
Flixotide/Flovent |
|
|
169 |
|
|
|
|
|
|
|
85 |
|
|
|
4 |
|
|
|
38 |
|
|
|
(5 |
) |
|
|
46 |
|
|
|
(3 |
) |
Seretide/Advair |
|
|
1,152 |
|
|
|
5 |
|
|
|
587 |
|
|
|
(1 |
) |
|
|
378 |
|
|
|
9 |
|
|
|
187 |
|
|
|
15 |
|
Serevent |
|
|
54 |
|
|
|
(18 |
) |
|
|
16 |
|
|
|
(18 |
) |
|
|
27 |
|
|
|
(16 |
) |
|
|
11 |
|
|
|
(27 |
) |
Ventolin |
|
|
110 |
|
|
|
28 |
|
|
|
35 |
|
|
|
>100 |
|
|
|
35 |
|
|
|
3 |
|
|
|
40 |
|
|
|
|
|
Zyrtec |
|
|
18 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-virals |
|
|
1,049 |
|
|
|
15 |
|
|
|
500 |
|
|
|
8 |
|
|
|
247 |
|
|
|
13 |
|
|
|
302 |
|
|
|
32 |
|
HIV |
|
|
392 |
|
|
|
(7 |
) |
|
|
168 |
|
|
|
(5 |
) |
|
|
155 |
|
|
|
(6 |
) |
|
|
69 |
|
|
|
(11 |
) |
Agenerase, Lexiva |
|
|
43 |
|
|
|
(3 |
) |
|
|
24 |
|
|
|
|
|
|
|
15 |
|
|
|
(7 |
) |
|
|
4 |
|
|
|
|
|
Combivir |
|
|
102 |
|
|
|
(15 |
) |
|
|
43 |
|
|
|
(10 |
) |
|
|
36 |
|
|
|
(13 |
) |
|
|
23 |
|
|
|
(23 |
) |
Epivir |
|
|
34 |
|
|
|
(14 |
) |
|
|
12 |
|
|
|
(9 |
) |
|
|
12 |
|
|
|
(15 |
) |
|
|
10 |
|
|
|
(18 |
) |
Epzicom/Kivexa |
|
|
131 |
|
|
|
6 |
|
|
|
52 |
|
|
|
2 |
|
|
|
60 |
|
|
|
10 |
|
|
|
19 |
|
|
|
6 |
|
Trizivir |
|
|
48 |
|
|
|
(12 |
) |
|
|
23 |
|
|
|
(13 |
) |
|
|
19 |
|
|
|
(23 |
) |
|
|
6 |
|
|
|
67 |
|
Ziagen |
|
|
26 |
|
|
|
(11 |
) |
|
|
13 |
|
|
|
10 |
|
|
|
8 |
|
|
|
(13 |
) |
|
|
5 |
|
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valtrex |
|
|
349 |
|
|
|
(1 |
) |
|
|
265 |
|
|
|
3 |
|
|
|
38 |
|
|
|
(3 |
) |
|
|
46 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relenza |
|
|
182 |
|
|
|
>100 |
|
|
|
45 |
|
|
|
>100 |
|
|
|
38 |
|
|
|
|
|
|
|
99 |
|
|
|
>100 |
|
Zeffix |
|
|
54 |
|
|
|
14 |
|
|
|
4 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
43 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central nervous system |
|
|
418 |
|
|
|
(37 |
) |
|
|
115 |
|
|
|
(67 |
) |
|
|
139 |
|
|
|
(9 |
) |
|
|
164 |
|
|
|
11 |
|
Imigran/Imitrex |
|
|
53 |
|
|
|
(74 |
) |
|
|
19 |
|
|
|
(89 |
) |
|
|
23 |
|
|
|
(8 |
) |
|
|
11 |
|
|
|
(10 |
) |
Lamictal |
|
|
121 |
|
|
|
(21 |
) |
|
|
64 |
|
|
|
(35 |
) |
|
|
38 |
|
|
|
(5 |
) |
|
|
19 |
|
|
|
20 |
|
Requip |
|
|
43 |
|
|
|
(30 |
) |
|
|
(4 |
) |
|
|
>(100 |
) |
|
|
34 |
|
|
|
(9 |
) |
|
|
13 |
|
|
|
13 |
|
Requip XL |
|
|
31 |
|
|
|
87 |
|
|
|
7 |
|
|
|
75 |
|
|
|
23 |
|
|
|
100 |
|
|
|
1 |
|
|
|
|
|
Seroxat/Paxil |
|
|
120 |
|
|
|
(12 |
) |
|
|
5 |
|
|
|
(54 |
) |
|
|
22 |
|
|
|
(26 |
) |
|
|
93 |
|
|
|
1 |
|
Treximet |
|
|
15 |
|
|
|
>100 |
|
|
|
15 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wellbutrin |
|
|
16 |
|
|
|
(70 |
) |
|
|
4 |
|
|
|
(86 |
) |
|
|
8 |
|
|
|
33 |
|
|
|
4 |
|
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiovascular and urogenital |
|
|
552 |
|
|
|
5 |
|
|
|
336 |
|
|
|
4 |
|
|
|
142 |
|
|
|
2 |
|
|
|
74 |
|
|
|
14 |
|
Arixtra |
|
|
60 |
|
|
|
20 |
|
|
|
32 |
|
|
|
23 |
|
|
|
24 |
|
|
|
11 |
|
|
|
4 |
|
|
|
67 |
|
Avodart |
|
|
131 |
|
|
|
14 |
|
|
|
80 |
|
|
|
10 |
|
|
|
36 |
|
|
|
10 |
|
|
|
15 |
|
|
|
50 |
|
Coreg |
|
|
39 |
|
|
|
(30 |
) |
|
|
39 |
|
|
|
(31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fraxiparine |
|
|
56 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
42 |
|
|
|
(15 |
) |
|
|
14 |
|
|
|
|
|
Levitra |
|
|
20 |
|
|
|
6 |
|
|
|
18 |
|
|
|
7 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Lovaza |
|
|
111 |
|
|
|
27 |
|
|
|
111 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vesicare |
|
|
25 |
|
|
|
17 |
|
|
|
25 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volibris |
|
|
6 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
>100 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metabolic |
|
|
284 |
|
|
|
(13 |
) |
|
|
132 |
|
|
|
(15 |
) |
|
|
67 |
|
|
|
(14 |
) |
|
|
85 |
|
|
|
(10 |
) |
Avandia products |
|
|
185 |
|
|
|
(14 |
) |
|
|
97 |
|
|
|
(14 |
) |
|
|
42 |
|
|
|
(19 |
) |
|
|
46 |
|
|
|
(9 |
) |
Avandia |
|
|
108 |
|
|
|
(19 |
) |
|
|
62 |
|
|
|
(18 |
) |
|
|
16 |
|
|
|
(25 |
) |
|
|
30 |
|
|
|
(16 |
) |
Avandamet |
|
|
66 |
|
|
|
(6 |
) |
|
|
29 |
|
|
|
(8 |
) |
|
|
25 |
|
|
|
(12 |
) |
|
|
12 |
|
|
|
9 |
|
Bonviva/Boniva |
|
|
60 |
|
|
|
(5 |
) |
|
|
35 |
|
|
|
(17 |
) |
|
|
22 |
|
|
|
11 |
|
|
|
3 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-bacterials |
|
|
376 |
|
|
|
3 |
|
|
|
39 |
|
|
|
(15 |
) |
|
|
146 |
|
|
|
(4 |
) |
|
|
191 |
|
|
|
14 |
|
Augmentin |
|
|
162 |
|
|
|
8 |
|
|
|
9 |
|
|
|
(22 |
) |
|
|
68 |
|
|
|
2 |
|
|
|
85 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology and emesis |
|
|
149 |
|
|
|
4 |
|
|
|
64 |
|
|
|
(11 |
) |
|
|
51 |
|
|
|
15 |
|
|
|
34 |
|
|
|
26 |
|
Hycamtin |
|
|
41 |
|
|
|
9 |
|
|
|
24 |
|
|
|
|
|
|
|
14 |
|
|
|
8 |
|
|
|
3 |
|
|
|
100 |
|
Promacta |
|
|
3 |
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tyverb/Tykerb |
|
|
46 |
|
|
|
54 |
|
|
|
12 |
|
|
|
(8 |
) |
|
|
19 |
|
|
|
90 |
|
|
|
15 |
|
|
|
>100 |
|
Zofran |
|
|
23 |
|
|
|
(33 |
) |
|
|
(1 |
) |
|
|
(100 |
) |
|
|
12 |
|
|
|
(20 |
) |
|
|
12 |
|
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines |
|
|
802 |
|
|
|
(2 |
) |
|
|
206 |
|
|
|
(20 |
) |
|
|
344 |
|
|
|
(3 |
) |
|
|
252 |
|
|
|
20 |
|
Boostrix |
|
|
39 |
|
|
|
55 |
|
|
|
24 |
|
|
|
54 |
|
|
|
11 |
|
|
|
43 |
|
|
|
4 |
|
|
|
100 |
|
Cervarix |
|
|
28 |
|
|
|
(40 |
) |
|
|
|
|
|
|
|
|
|
|
17 |
|
|
|
(61 |
) |
|
|
11 |
|
|
|
>100 |
|
Fluarix, FluLaval |
|
|
147 |
|
|
|
(14 |
) |
|
|
63 |
|
|
|
(19 |
) |
|
|
60 |
|
|
|
(10 |
) |
|
|
24 |
|
|
|
(9 |
) |
Flu Pre-Pandemic |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
(60 |
) |
|
|
7 |
|
|
|
|
|
Hepatitis |
|
|
170 |
|
|
|
(12 |
) |
|
|
67 |
|
|
|
(29 |
) |
|
|
65 |
|
|
|
|
|
|
|
38 |
|
|
|
10 |
|
Infanrix, Pediarix |
|
|
167 |
|
|
|
(10 |
) |
|
|
30 |
|
|
|
(52 |
) |
|
|
105 |
|
|
|
8 |
|
|
|
32 |
|
|
|
22 |
|
Rotarix |
|
|
84 |
|
|
|
92 |
|
|
|
22 |
|
|
|
>100 |
|
|
|
14 |
|
|
|
9 |
|
|
|
48 |
|
|
|
83 |
|
Synflorix |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
Other |
|
|
258 |
|
|
|
15 |
|
|
|
7 |
|
|
|
(75 |
) |
|
|
87 |
|
|
|
25 |
|
|
|
164 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,482 |
|
|
|
|
|
|
|
2,143 |
|
|
|
(12 |
) |
|
|
1,734 |
|
|
|
3 |
|
|
|
1,605 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stiefel products |
|
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,593 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical
turnover includes co-promotion income.
Issued: Wednesday, 28th October 2009, London, U.K.
8
|
|
|
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Consumer Healthcare turnover
Three months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
USA |
|
|
Europe |
|
|
Rest of World |
|
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
Over-the-counter medicines |
|
|
567 |
|
|
|
9 |
|
|
|
174 |
|
|
|
(3 |
) |
|
|
186 |
|
|
|
27 |
|
|
|
207 |
|
|
|
6 |
|
Alli |
|
|
49 |
|
|
|
>100 |
|
|
|
20 |
|
|
|
|
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Breathe Right |
|
|
23 |
|
|
|
5 |
|
|
|
15 |
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
3 |
|
|
|
50 |
|
Cold sore franchise |
|
|
28 |
|
|
|
14 |
|
|
|
17 |
|
|
|
40 |
|
|
|
9 |
|
|
|
|
|
|
|
2 |
|
|
|
(25 |
) |
Nicotine replacement therapy |
|
|
79 |
|
|
|
(16 |
) |
|
|
58 |
|
|
|
(17 |
) |
|
|
13 |
|
|
|
|
|
|
|
8 |
|
|
|
(30 |
) |
Panadol |
|
|
96 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
26 |
|
|
|
32 |
|
|
|
70 |
|
|
|
|
|
Tums |
|
|
25 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
4 |
|
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oral healthcare |
|
|
375 |
|
|
|
10 |
|
|
|
75 |
|
|
|
20 |
|
|
|
190 |
|
|
|
3 |
|
|
|
110 |
|
|
|
18 |
|
Aquafresh franchise |
|
|
126 |
|
|
|
(2 |
) |
|
|
23 |
|
|
|
|
|
|
|
75 |
|
|
|
(3 |
) |
|
|
28 |
|
|
|
|
|
Biotene |
|
|
7 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
Denture care |
|
|
85 |
|
|
|
10 |
|
|
|
19 |
|
|
|
13 |
|
|
|
32 |
|
|
|
15 |
|
|
|
34 |
|
|
|
4 |
|
Sensodyne franchise |
|
|
118 |
|
|
|
20 |
|
|
|
28 |
|
|
|
41 |
|
|
|
48 |
|
|
|
7 |
|
|
|
42 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nutritional healthcare |
|
|
223 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
125 |
|
|
|
(2 |
) |
|
|
98 |
|
|
|
15 |
|
Horlicks |
|
|
64 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
(20 |
) |
|
|
60 |
|
|
|
17 |
|
Lucozade |
|
|
104 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
92 |
|
|
|
2 |
|
|
|
12 |
|
|
|
18 |
|
Ribena |
|
|
40 |
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
29 |
|
|
|
(12 |
) |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,165 |
|
|
|
8 |
|
|
|
249 |
|
|
|
3 |
|
|
|
501 |
|
|
|
9 |
|
|
|
415 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of comprehensive income
|
|
|
|
|
|
|
|
|
|
|
3 months 2009 |
|
|
3 months 2008 |
|
|
|
£m |
|
|
£m |
|
Profit for the period |
|
|
1,371 |
|
|
|
1,056 |
|
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net assets |
|
|
457 |
|
|
|
132 |
|
Tax on exchange movements |
|
|
|
|
|
|
2 |
|
Fair value movements on available-for-sale investments |
|
|
102 |
|
|
|
71 |
|
Deferred tax on fair value movements on available-for-sale investments |
|
|
(1 |
) |
|
|
(2 |
) |
Actuarial gains/(losses) on defined benefit plans |
|
|
434 |
|
|
|
(453 |
) |
Deferred tax on actuarial movements in defined benefit plans |
|
|
(102 |
) |
|
|
145 |
|
Fair value movements on cash flow hedges |
|
|
|
|
|
|
5 |
|
Deferred tax on fair value movements on cash flow hedges |
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
890 |
|
|
|
(103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
2,261 |
|
|
|
953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period attributable to: |
|
|
|
|
|
|
|
|
Shareholders |
|
|
2,217 |
|
|
|
907 |
|
Minority interests |
|
|
44 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
2,261 |
|
|
|
953 |
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
9
|
|
|
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
GSKs late-stage pharmaceuticals and vaccines pipeline
The table below is provided as part of GSKs quarterly update to show events
and changes to the late stage pipeline during the quarter and up to the date of
announcement.
The following assets were listed as approved or terminated in the last
quarterly update and are no longer included in the table: elesclomol, Lamictal
XR/ODT, Lunivia.
|
|
|
|
|
|
|
|
|
Biopharmaceuticals |
|
|
|
USA |
|
EU |
|
News update in the quarter |
mepolizumab
|
|
HES
|
|
n/a
|
|
File withdrawn July
2009
|
|
No longer pursuing HES indication. Severe asthma
(Phase IIb) now lead indication. |
Arzerra
(ofatumumab)
|
|
CLL
|
|
Approved
Oct 2009
|
|
Filed
Feb 2009
|
|
Approved in the USA on 26th
October 2009.
Positive data announced from
Phase II combination study 407
in front-line CLL 11th August. |
|
|
NHL
|
|
Ph III
|
|
Ph III
|
|
Data announced from monotherapy
study 405 in Rituxan-refractory
NHL 17th August.
Positive data announced from
Phase II study 409 in
front-line NHL 26th August. |
|
|
RA
|
|
Ph III
|
|
Ph III
|
|
Positive data announced from
study 635 in RA 30th July. |
Benlysta
(belimumab)
|
|
Systemic lupus
|
|
Ph III
|
|
Ph III
|
|
BLISS-52 data presented at ACR
on 20th October. |
otelixizumab
|
|
Type 1 diabetes
|
|
Ph III
|
|
Ph III |
|
|
Syncria
|
|
Type 2 diabetes
|
|
Ph III
|
|
Ph III |
|
|
denosumab
|
|
Post menopausal
osteoporosis
|
|
n/a
|
|
Filed
|
|
Commercialisation agreement
with Amgen announced 27th July
2009. |
|
|
|
|
|
|
|
|
|
Cardiovascular
& Metabolic |
|
|
|
USA |
|
EU |
|
News update in the quarter |
Arixtra
|
|
Acute coronary syndrome
|
|
Filed
|
|
Approved |
|
|
Avandamet XR
|
|
Type II diabetes
|
|
Ph III
|
|
Ph III
|
|
Filing strategy under review. |
Avandia + statin
|
|
Type II diabetes
|
|
Ph III
|
|
Ph III
|
|
Filing strategy under review. |
darapladib
|
|
Atherosclerosis
|
|
Ph III
|
|
Ph III
|
|
Second Phase III study (SOLID)
to commence in December. |
|
|
|
|
|
|
|
|
|
Neurosciences |
|
|
|
USA |
|
EU |
|
News update in the quarter |
262 (formerly
known as Solzira)
|
|
RLS
|
|
Filed
Jan 2009
|
|
Ph III
|
|
PDUFA date 9th November 2009.
Positive data from two PHN
studies announced 17th
September and 5th October. |
almorexant
|
|
Primary insomnia
|
|
Ph III
|
|
Ph III |
|
|
retigabine
|
|
Epilepsy
|
|
Ph III
|
|
Ph III
|
|
Announced 24th August that PHN
study did not achieve primary
efficacy endpoint. |
Issued: Wednesday, 28th October 2009, London, U.K.
10
|
|
|
PRESS
RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
|
|
|
|
|
|
|
|
|
Oncology |
|
|
|
USA |
|
EU |
|
News update in the quarter |
Promacta/Revolade
|
|
Chronic ITP
|
|
Approved
|
|
Filed
|
|
Filed in Japan 30th September. |
|
|
Hepatitis C
|
|
Ph III
|
|
Ph III |
|
|
|
|
CLD
|
|
Ph III
|
|
Ph III
|
|
Chronic liver disease study is
currently suspended. |
Avodart
|
|
Prostate cancer prevention
|
|
Filed
Sept 2009
|
|
Filed
Sept 2009
|
|
Filed in USA and in EU on 30th
September 2009. |
|
|
Duodart/Flodart (fixed
dose
combination with
tamsulosin)
|
|
Filed
Mar 2009
|
|
Filed
|
|
COMBAT study published online
in European Urology in October
2009. |
Rezonic/Zunrisa
|
|
CINV/PONV
|
|
File
withdrawn
Sept 2009
|
|
File
withdrawn
Sept 2009 |
|
|
Votrient/Patorma
(pazopanib)
|
|
Renal cell cancer
|
|
Approved
Oct 2009
|
|
Filed
Mar 2009
|
|
Approved in the USA on 19th
October 2009. |
|
|
Sarcoma
|
|
Ph III
|
|
Ph III |
|
|
|
|
Ovarian
|
|
Ph III
|
|
Ph III |
|
|
|
|
First-line metastatic
|
|
Filed
Mar 2009
|
|
Filed
Mar 2009 |
|
|
Tykerb
|
|
Inflammatory breast cancer
|
|
Filed
Sept 2009
|
|
n/a
|
|
Filed in USA on 18th September
2009. |
|
|
Adjuvant breast cancer
|
|
Ph III
|
|
Ph III |
|
|
|
|
Head & neck cancer
|
|
Ph III
|
|
Ph III |
|
|
|
|
Gastric cancer
|
|
Ph III
|
|
Ph III |
|
|
pazopanib + Tykerb
|
|
Inflammatory breast cancer
|
|
Ph III
|
|
Ph III |
|
|
|
|
|
|
|
|
|
|
|
Respiratory & Immuno- inflammation |
|
|
|
USA |
|
EU |
|
News update in the quarter |
HORIZON
(444 & 698)
|
|
COPD
|
|
Ph III
|
|
Ph III
|
|
Announced Phase III start 27th
October 2009. |
|
|
|
|
|
|
|
|
|
Vaccines |
|
|
|
USA
|
|
EU
|
|
News update in the quarter |
Hiberix
|
|
monovalent Hib vaccine
|
|
Approved
Aug 2009
|
|
Approved
|
|
Approved for booster (4th) dose
in USA 19th August 2009. |
Cervarix
|
|
HPV prophylaxis
|
|
Approved
Oct 2009
|
|
Approved
|
|
Approved in USA and Japan
16th October 2009. |
Menhibrix
(HibMenCY-TT)
|
|
MenCY and Hib
prophylaxis
|
|
Filed
Aug 2009
|
|
n/a
|
|
Filed in USA on 12th August
2009. |
Pandemrix (H1N1)
|
|
H1N1 pandemic influenza
prophylaxis (adjuvanted)
|
|
n/a
|
|
Approved
Sept 2009
|
|
Filed unadjuvanted H1N1 in USA
on 4th September 2009. |
Prepandrix (H5N1)
|
|
H5N1 pandemic influenza
prophylaxis
|
|
Ph III
|
|
Approved |
|
|
MAGE-A3
|
|
NSCLC
|
|
Ph III
|
|
Ph III |
|
|
|
|
Melanoma
|
|
Ph III
|
|
Ph III |
|
|
MenACWY
|
|
MenACWY prophylaxis
|
|
Ph III
|
|
Ph III |
|
|
New generation flu
|
|
Influenza prophylaxis
|
|
Ph III
|
|
Ph III |
|
|
Simplirix
|
|
Genital herpes prophylaxis
|
|
Ph III
|
|
Ph III |
|
|
Mosquirix
|
|
Malaria prophylaxis
|
|
n/a
|
|
n/a
|
|
Phase III study ongoing in Africa. |
Issued: Wednesday, 28th October 2009, London, U.K.
11
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Turnover
and key product movements impacting performance nine months to 30th September 2009
Total Group turnover fell 1%, with a 3% decline in pharmaceutical sales partly offset by a 7% increase in
Consumer Healthcare sales.
The 3% decline in total pharmaceutical sales was driven primarily by generic competition to several
significant CNS products in the USA, including Lamictal and Imitrex (total CNS sales in the USA were down 74%
to
£473 million). This was partly offset by growth in several areas including: respiratory products (+4% to
£5,063 million), vaccines (+8% to £2,183 million) and sales of anti-viral treatment Relenza (more than doubled
to £464 million). Regionally, US pharmaceutical sales declined 16% whilst sales grew +3% in Europe, +19%
in Emerging Markets and +18% in Japan. Stiefel contributed £111 million to pharmaceutical turnover.
Total Consumer Healthcare sales grew 7% to £3,476 million with overall growth in each category of business:
OTC medicines (+9% to £1,707 million), Oral care (+8% to £1,109 million) and Nutritional Healthcare (+2% to
£660 million).
Operating
profit and earnings per share commentary nine months to 30th September 2009
Results before major restructuring
Operating profit before major restructuring for the nine months to 30th September 2009 was £6,580 million,
a 13% decline in CER terms.
Cost of sales increased to 24.6% of turnover (2008: 23.7%), principally reflecting the impact of generic
competition to higher margin products in the USA.
SG&A costs as a percentage of turnover increased by 2.2 percentage points to 31.7% compared with 2008.
This reflected investment in growth markets, the acquisition of Stiefel, increased legal costs and exchange
losses on inter-company transactions, partially offset by the benefits of the current restructuring
programme. Excluding legal costs of £199 million and exchange losses of £94 million, SG&A costs were
30.2% of turnover (2008: 29.2%).
R&D expenditure at 14.0% (2008: 13.9%) of total turnover included £161 million of intangible asset
write-offs (2008: £4 million).
Other operating income was £582 million including asset disposals of £364 million, primarily reflecting
the disposal of Wellbutrin XL, royalty income of £229 million (2008: £210 million), and a settlement gain
of
£79 million, partially offset by equity investment impairments of £99 million. In addition, profit on
disposal of interests in associates was £115 million as 5.7 million Quest shares were sold in the first
quarter.
EPS before major restructuring of 85.8p decreased 12% in CER terms (a 10% increase in sterling terms)
compared with 2008. The favourable currency impact of 22 percentage points reflected the weakness of
Sterling against most major currencies compared with last year.
Total results after restructuring
Operating profit after restructuring for the nine months to 30th September 2009 was £5,978 million, down
14% CER (an increase of 8% in sterling terms) compared with 2008. This included £602 million of
restructuring charges (2008: £594 million); £264 million was charged to cost of sales (2008: £328
million), £218 million to SG&A (2008: £213 million) and £120 million to R&D (2008: £53 million). EPS
after restructuring of 77.0p decreased 12% CER but increased 11% in sterling terms compared with 2008.
Issued: Wednesday, 28th October 2009, London, U.K.
12
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Income statement
Nine months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results |
|
|
|
|
|
|
|
|
|
before major |
|
|
|
|
|
|
Major |
|
|
|
|
|
|
before major |
|
|
Major |
|
|
|
|
|
|
restructuring |
|
|
|
|
|
|
restructuring |
|
|
Total |
|
|
restructuring |
|
|
restructuring |
|
|
Total |
|
|
|
9 months |
|
|
|
|
|
|
9 months |
|
|
9 months |
|
|
9 months |
|
|
9 months |
|
|
9 months |
|
|
|
2009 |
|
|
Growth |
|
|
2009 |
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
2008 |
|
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER |
|
|
20,274 |
|
|
|
(1 |
) |
|
|
|
|
|
|
20,274 |
|
|
|
17,442 |
|
|
|
|
|
|
|
17,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
(4,997 |
) |
|
|
10 |
|
|
|
(264 |
) |
|
|
(5,261 |
) |
|
|
(4,134 |
) |
|
|
(328 |
) |
|
|
(4,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
15,277 |
|
|
|
(5 |
) |
|
|
(264 |
) |
|
|
15,013 |
|
|
|
13,308 |
|
|
|
(328 |
) |
|
|
12,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration |
|
|
(6,420 |
) |
|
|
4 |
|
|
|
(218 |
) |
|
|
(6,638 |
) |
|
|
(5,147 |
) |
|
|
(213 |
) |
|
|
(5,360 |
) |
Research and development |
|
|
(2,859 |
) |
|
|
3 |
|
|
|
(120 |
) |
|
|
(2,979 |
) |
|
|
(2,416 |
) |
|
|
(53 |
) |
|
|
(2,469 |
) |
Other operating income |
|
|
582 |
|
|
|
|
|
|
|
|
|
|
|
582 |
|
|
|
408 |
|
|
|
|
|
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
|
6,580 |
|
|
|
(13 |
) |
|
|
(602 |
) |
|
|
5,978 |
|
|
|
6,153 |
|
|
|
(594 |
) |
|
|
5,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
65 |
|
|
|
276 |
|
|
|
|
|
|
|
276 |
|
Finance costs |
|
|
(567 |
) |
|
|
|
|
|
|
(3 |
) |
|
|
(570 |
) |
|
|
(600 |
) |
|
|
(2 |
) |
|
|
(602 |
) |
Profit on disposal of interest
in associate |
|
|
115 |
|
|
|
|
|
|
|
|
|
|
|
115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of after tax profits of
associates and joint
ventures |
|
|
53 |
|
|
|
|
|
|
|
|
|
|
|
53 |
|
|
|
30 |
|
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION |
|
|
6,246 |
|
|
|
(14 |
) |
|
|
(605 |
) |
|
|
5,641 |
|
|
|
5,859 |
|
|
|
(596 |
) |
|
|
5,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
(1,797 |
) |
|
|
|
|
|
|
157 |
|
|
|
(1,640 |
) |
|
|
(1,699 |
) |
|
|
131 |
|
|
|
(1,568 |
) |
Tax rate % |
|
|
28.8 |
% |
|
|
|
|
|
|
|
|
|
|
29.1 |
% |
|
|
29.0 |
% |
|
|
|
|
|
|
29.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAXATION FOR THE
PERIOD |
|
|
4,449 |
|
|
|
(14 |
) |
|
|
(448 |
) |
|
|
4,001 |
|
|
|
4,160 |
|
|
|
(465 |
) |
|
|
3,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to minority
interests |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
100 |
|
|
|
75 |
|
|
|
|
|
|
|
75 |
|
Profit attributable to
shareholders |
|
|
4,349 |
|
|
|
|
|
|
|
(448 |
) |
|
|
3,901 |
|
|
|
4,085 |
|
|
|
(465 |
) |
|
|
3,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,449 |
|
|
|
|
|
|
|
(448 |
) |
|
|
4,001 |
|
|
|
4,160 |
|
|
|
(465 |
) |
|
|
3,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
85.8p |
|
|
|
(12 |
) |
|
|
|
|
|
|
77.0p |
|
|
|
78.0p |
|
|
|
|
|
|
|
69.2p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
85.2p |
|
|
|
|
|
|
|
|
|
|
|
76.4p |
|
|
|
77.5p |
|
|
|
|
|
|
|
68.7p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
13
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Pharmaceuticals turnover
Nine months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
USA |
|
|
Europe |
|
|
Rest of World |
|
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
Respiratory |
|
|
5,063 |
|
|
|
4 |
|
|
|
2,413 |
|
|
|
2 |
|
|
|
1,607 |
|
|
|
2 |
|
|
|
1,043 |
|
|
|
13 |
|
Avamys/Veramyst |
|
|
109 |
|
|
|
91 |
|
|
|
53 |
|
|
|
11 |
|
|
|
34 |
|
|
|
>100 |
|
|
|
22 |
|
|
|
>100 |
|
Flixonase/Flonase |
|
|
136 |
|
|
|
(22 |
) |
|
|
21 |
|
|
|
(61 |
) |
|
|
33 |
|
|
|
(23 |
) |
|
|
82 |
|
|
|
7 |
|
Flixotide/Flovent |
|
|
553 |
|
|
|
(2 |
) |
|
|
281 |
|
|
|
4 |
|
|
|
129 |
|
|
|
(4 |
) |
|
|
143 |
|
|
|
(8 |
) |
Seretide/Advair |
|
|
3,611 |
|
|
|
5 |
|
|
|
1,888 |
|
|
|
|
|
|
|
1,173 |
|
|
|
4 |
|
|
|
550 |
|
|
|
23 |
|
Serevent |
|
|
175 |
|
|
|
(21 |
) |
|
|
53 |
|
|
|
(16 |
) |
|
|
87 |
|
|
|
(18 |
) |
|
|
35 |
|
|
|
(35 |
) |
Ventolin |
|
|
338 |
|
|
|
25 |
|
|
|
105 |
|
|
|
>100 |
|
|
|
108 |
|
|
|
1 |
|
|
|
125 |
|
|
|
(3 |
) |
Zyrtec |
|
|
53 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-virals |
|
|
3,117 |
|
|
|
13 |
|
|
|
1,484 |
|
|
|
7 |
|
|
|
823 |
|
|
|
19 |
|
|
|
810 |
|
|
|
18 |
|
HIV |
|
|
1,193 |
|
|
|
(8 |
) |
|
|
527 |
|
|
|
(7 |
) |
|
|
480 |
|
|
|
(10 |
) |
|
|
186 |
|
|
|
(8 |
) |
Agenerase, Lexiva |
|
|
134 |
|
|
|
(2 |
) |
|
|
74 |
|
|
|
4 |
|
|
|
48 |
|
|
|
(9 |
) |
|
|
12 |
|
|
|
|
|
Combivir |
|
|
316 |
|
|
|
(16 |
) |
|
|
140 |
|
|
|
(13 |
) |
|
|
114 |
|
|
|
(19 |
) |
|
|
62 |
|
|
|
(16 |
) |
Epivir |
|
|
99 |
|
|
|
(19 |
) |
|
|
36 |
|
|
|
(15 |
) |
|
|
38 |
|
|
|
(23 |
) |
|
|
25 |
|
|
|
(19 |
) |
Epzicom/Kivexa |
|
|
397 |
|
|
|
7 |
|
|
|
160 |
|
|
|
2 |
|
|
|
181 |
|
|
|
7 |
|
|
|
56 |
|
|
|
26 |
|
Trizivir |
|
|
152 |
|
|
|
(17 |
) |
|
|
78 |
|
|
|
(16 |
) |
|
|
63 |
|
|
|
(21 |
) |
|
|
11 |
|
|
|
11 |
|
Ziagen |
|
|
78 |
|
|
|
(15 |
) |
|
|
38 |
|
|
|
(3 |
) |
|
|
26 |
|
|
|
(15 |
) |
|
|
14 |
|
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valtrex |
|
|
1,072 |
|
|
|
3 |
|
|
|
813 |
|
|
|
9 |
|
|
|
119 |
|
|
|
(2 |
) |
|
|
140 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relenza |
|
|
464 |
|
|
|
>100 |
|
|
|
75 |
|
|
|
>100 |
|
|
|
173 |
|
|
|
>100 |
|
|
|
216 |
|
|
|
>100 |
|
Zeffix |
|
|
162 |
|
|
|
(1 |
) |
|
|
13 |
|
|
|
(9 |
) |
|
|
22 |
|
|
|
|
|
|
|
127 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central nervous system |
|
|
1,366 |
|
|
|
(49 |
) |
|
|
473 |
|
|
|
(74 |
) |
|
|
428 |
|
|
|
(7 |
) |
|
|
465 |
|
|
|
4 |
|
Imigran/Imitrex |
|
|
185 |
|
|
|
(69 |
) |
|
|
80 |
|
|
|
(84 |
) |
|
|
71 |
|
|
|
(8 |
) |
|
|
34 |
|
|
|
(4 |
) |
Lamictal |
|
|
368 |
|
|
|
(59 |
) |
|
|
195 |
|
|
|
(74 |
) |
|
|
115 |
|
|
|
(4 |
) |
|
|
58 |
|
|
|
4 |
|
Requip |
|
|
144 |
|
|
|
(40 |
) |
|
|
10 |
|
|
|
(91 |
) |
|
|
101 |
|
|
|
(3 |
) |
|
|
33 |
|
|
|
14 |
|
Requip XL |
|
|
83 |
|
|
|
>100 |
|
|
|
20 |
|
|
|
>100 |
|
|
|
62 |
|
|
|
>100 |
|
|
|
1 |
|
|
|
|
|
Seroxat/Paxil |
|
|
384 |
|
|
|
(15 |
) |
|
|
32 |
|
|
|
(52 |
) |
|
|
77 |
|
|
|
(20 |
) |
|
|
275 |
|
|
|
(3 |
) |
Treximet |
|
|
41 |
|
|
|
>100 |
|
|
|
41 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wellbutrin |
|
|
110 |
|
|
|
(67 |
) |
|
|
78 |
|
|
|
(76 |
) |
|
|
21 |
|
|
|
58 |
|
|
|
11 |
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiovascular and urogenital |
|
|
1,683 |
|
|
|
7 |
|
|
|
1,040 |
|
|
|
8 |
|
|
|
428 |
|
|
|
2 |
|
|
|
215 |
|
|
|
14 |
|
Arixtra |
|
|
180 |
|
|
|
29 |
|
|
|
98 |
|
|
|
35 |
|
|
|
69 |
|
|
|
20 |
|
|
|
13 |
|
|
|
38 |
|
Avodart |
|
|
387 |
|
|
|
15 |
|
|
|
236 |
|
|
|
11 |
|
|
|
109 |
|
|
|
13 |
|
|
|
42 |
|
|
|
48 |
|
Coreg |
|
|
141 |
|
|
|
(21 |
) |
|
|
140 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(50 |
) |
Fraxiparine |
|
|
169 |
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
128 |
|
|
|
(13 |
) |
|
|
41 |
|
|
|
6 |
|
Levitra |
|
|
58 |
|
|
|
7 |
|
|
|
54 |
|
|
|
5 |
|
|
|
3 |
|
|
|
50 |
|
|
|
1 |
|
|
|
|
|
Lovaza |
|
|
321 |
|
|
|
32 |
|
|
|
320 |
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
100 |
|
Vesicare |
|
|
75 |
|
|
|
23 |
|
|
|
75 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volibris |
|
|
12 |
|
|
|
>100 |
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
|
>100 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metabolic |
|
|
881 |
|
|
|
(14 |
) |
|
|
431 |
|
|
|
(16 |
) |
|
|
206 |
|
|
|
(15 |
) |
|
|
244 |
|
|
|
(7 |
) |
Avandia products |
|
|
580 |
|
|
|
(16 |
) |
|
|
316 |
|
|
|
(17 |
) |
|
|
131 |
|
|
|
(23 |
) |
|
|
133 |
|
|
|
(5 |
) |
Avandia |
|
|
350 |
|
|
|
(20 |
) |
|
|
207 |
|
|
|
(22 |
) |
|
|
52 |
|
|
|
(24 |
) |
|
|
91 |
|
|
|
(14 |
) |
Avandamet |
|
|
199 |
|
|
|
(10 |
) |
|
|
89 |
|
|
|
(7 |
) |
|
|
75 |
|
|
|
(21 |
) |
|
|
35 |
|
|
|
19 |
|
Bonviva/Boniva |
|
|
188 |
|
|
|
(4 |
) |
|
|
114 |
|
|
|
(14 |
) |
|
|
66 |
|
|
|
12 |
|
|
|
8 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anti-bacterials |
|
|
1,183 |
|
|
|
2 |
|
|
|
132 |
|
|
|
(16 |
) |
|
|
481 |
|
|
|
(5 |
) |
|
|
570 |
|
|
|
13 |
|
Augmentin |
|
|
494 |
|
|
|
3 |
|
|
|
36 |
|
|
|
(18 |
) |
|
|
213 |
|
|
|
(3 |
) |
|
|
245 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oncology and emesis |
|
|
459 |
|
|
|
8 |
|
|
|
222 |
|
|
|
(2 |
) |
|
|
152 |
|
|
|
14 |
|
|
|
85 |
|
|
|
23 |
|
Hycamtin |
|
|
127 |
|
|
|
7 |
|
|
|
74 |
|
|
|
4 |
|
|
|
44 |
|
|
|
11 |
|
|
|
9 |
|
|
|
13 |
|
Promacta |
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tyverb/Tykerb |
|
|
121 |
|
|
|
54 |
|
|
|
40 |
|
|
|
(3 |
) |
|
|
54 |
|
|
|
96 |
|
|
|
27 |
|
|
|
>100 |
|
Zofran |
|
|
85 |
|
|
|
(19 |
) |
|
|
10 |
|
|
|
(38 |
) |
|
|
40 |
|
|
|
(23 |
) |
|
|
35 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vaccines |
|
|
2,183 |
|
|
|
8 |
|
|
|
521 |
|
|
|
(9 |
) |
|
|
950 |
|
|
|
7 |
|
|
|
712 |
|
|
|
27 |
|
Boostrix |
|
|
104 |
|
|
|
64 |
|
|
|
56 |
|
|
|
63 |
|
|
|
29 |
|
|
|
32 |
|
|
|
19 |
|
|
|
>100 |
|
Cervarix |
|
|
149 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
119 |
|
|
|
85 |
|
|
|
30 |
|
|
|
>100 |
|
Fluarix, FluLaval |
|
|
169 |
|
|
|
(4 |
) |
|
|
68 |
|
|
|
(14 |
) |
|
|
60 |
|
|
|
(9 |
) |
|
|
41 |
|
|
|
28 |
|
Flu Pre-Pandemic |
|
|
47 |
|
|
|
(16 |
) |
|
|
25 |
|
|
|
|
|
|
|
14 |
|
|
|
(71 |
) |
|
|
8 |
|
|
|
|
|
Hepatitis |
|
|
514 |
|
|
|
(9 |
) |
|
|
206 |
|
|
|
(19 |
) |
|
|
198 |
|
|
|
(5 |
) |
|
|
110 |
|
|
|
7 |
|
Infanrix, Pediarix |
|
|
496 |
|
|
|
(12 |
) |
|
|
107 |
|
|
|
(46 |
) |
|
|
305 |
|
|
|
2 |
|
|
|
84 |
|
|
|
10 |
|
Rotarix |
|
|
212 |
|
|
|
79 |
|
|
|
59 |
|
|
|
>100 |
|
|
|
39 |
|
|
|
17 |
|
|
|
114 |
|
|
|
48 |
|
Synflorix |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
752 |
|
|
|
(5 |
) |
|
|
14 |
|
|
|
(15 |
) |
|
|
245 |
|
|
|
6 |
|
|
|
493 |
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,687 |
|
|
|
(3 |
) |
|
|
6,730 |
|
|
|
(16 |
) |
|
|
5,320 |
|
|
|
3 |
|
|
|
4,637 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stiefel products |
|
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,798 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical turnover includes co-promotion income.
Issued: Wednesday, 28th October 2009, London, U.K.
14
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Consumer Healthcare turnover
Nine months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
USA |
|
|
Europe |
|
|
Rest of World |
|
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
|
£m |
|
|
CER% |
|
Over-the-counter medicines |
|
|
1,707 |
|
|
|
9 |
|
|
|
537 |
|
|
|
|
|
|
|
527 |
|
|
|
18 |
|
|
|
643 |
|
|
|
9 |
|
Alli |
|
|
163 |
|
|
|
>100 |
|
|
|
74 |
|
|
|
35 |
|
|
|
88 |
|
|
|
|
|
|
|
1 |
|
|
|
(50 |
) |
Breathe Right |
|
|
70 |
|
|
|
7 |
|
|
|
39 |
|
|
|
(3 |
) |
|
|
17 |
|
|
|
7 |
|
|
|
14 |
|
|
|
50 |
|
Cold sore franchise |
|
|
71 |
|
|
|
|
|
|
|
35 |
|
|
|
8 |
|
|
|
28 |
|
|
|
(4 |
) |
|
|
8 |
|
|
|
(13 |
) |
Nicotine replacement therapy |
|
|
249 |
|
|
|
1 |
|
|
|
184 |
|
|
|
|
|
|
|
45 |
|
|
|
5 |
|
|
|
20 |
|
|
|
|
|
Panadol |
|
|
289 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
66 |
|
|
|
11 |
|
|
|
223 |
|
|
|
6 |
|
Tums |
|
|
80 |
|
|
|
|
|
|
|
69 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
10 |
|
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oral healthcare |
|
|
1,109 |
|
|
|
8 |
|
|
|
224 |
|
|
|
15 |
|
|
|
564 |
|
|
|
3 |
|
|
|
321 |
|
|
|
13 |
|
Aquafresh franchise |
|
|
375 |
|
|
|
(1 |
) |
|
|
71 |
|
|
|
(3 |
) |
|
|
219 |
|
|
|
(2 |
) |
|
|
85 |
|
|
|
4 |
|
Biotene |
|
|
19 |
|
|
|
|
|
|
|
14 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
3 |
|
|
|
|
|
Denture care |
|
|
249 |
|
|
|
8 |
|
|
|
58 |
|
|
|
5 |
|
|
|
92 |
|
|
|
8 |
|
|
|
99 |
|
|
|
11 |
|
Sensodyne franchise |
|
|
343 |
|
|
|
14 |
|
|
|
77 |
|
|
|
30 |
|
|
|
145 |
|
|
|
6 |
|
|
|
121 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nutritional healthcare |
|
|
660 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
350 |
|
|
|
(7 |
) |
|
|
310 |
|
|
|
17 |
|
Horlicks |
|
|
200 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
13 |
|
|
|
(19 |
) |
|
|
187 |
|
|
|
21 |
|
Lucozade |
|
|
290 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
249 |
|
|
|
(6 |
) |
|
|
41 |
|
|
|
15 |
|
Ribena |
|
|
122 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
87 |
|
|
|
(9 |
) |
|
|
35 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,476 |
|
|
|
7 |
|
|
|
761 |
|
|
|
4 |
|
|
|
1,441 |
|
|
|
5 |
|
|
|
1,274 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of comprehensive income
|
|
|
|
|
|
|
|
|
|
|
9 months 2009 |
|
|
9 months 2008 |
|
|
|
£m |
|
|
£m |
|
Profit for the period |
|
|
4,001 |
|
|
|
3,695 |
|
|
|
|
|
|
|
|
|
|
Exchange movements on overseas net assets |
|
|
(142 |
) |
|
|
321 |
|
Tax on exchange movements |
|
|
|
|
|
|
(5 |
) |
Fair value movements on available-for-sale investments |
|
|
93 |
|
|
|
(48 |
) |
Deferred tax on fair value movements on available-for-sale investments |
|
|
(9 |
) |
|
|
11 |
|
Actuarial losses on defined benefit plans |
|
|
(486 |
) |
|
|
(960 |
) |
Deferred tax on actuarial movements in defined benefit plans |
|
|
147 |
|
|
|
296 |
|
Fair value movements on cash flow hedges |
|
|
(6 |
) |
|
|
1 |
|
Deferred tax on fair value movements on cash flow hedges |
|
|
2 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
(401 |
) |
|
|
(385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
3,600 |
|
|
|
3,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period attributable to: |
|
|
|
|
|
|
|
|
Shareholders |
|
|
3,538 |
|
|
|
3,237 |
|
Minority interests |
|
|
62 |
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
3,600 |
|
|
|
3,310 |
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
15
|
|
|
PRESS RELEASE
|
|
![(GSK LOGO)](u07800u0780003.gif) |
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30th September |
|
|
30th September |
|
|
31st December |
|
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
|
£m |
|
|
£m |
|
|
£m |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
9,380 |
|
|
|
8,395 |
|
|
|
9,678 |
|
Goodwill |
|
|
3,294 |
|
|
|
1,747 |
|
|
|
2,101 |
|
Other intangible assets |
|
|
7,261 |
|
|
|
4,944 |
|
|
|
5,869 |
|
Investments in associates and joint ventures |
|
|
511 |
|
|
|
445 |
|
|
|
552 |
|
Other investments |
|
|
558 |
|
|
|
454 |
|
|
|
478 |
|
Deferred tax assets |
|
|
2,397 |
|
|
|
2,439 |
|
|
|
2,760 |
|
Derivative financial instruments |
|
|
89 |
|
|
|
17 |
|
|
|
107 |
|
Other non-current assets |
|
|
616 |
|
|
|
465 |
|
|
|
579 |
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
24,106 |
|
|
|
18,906 |
|
|
|
22,124 |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
4,193 |
|
|
|
3,515 |
|
|
|
4,056 |
|
Current tax recoverable |
|
|
52 |
|
|
|
50 |
|
|
|
76 |
|
Trade and other receivables |
|
|
6,050 |
|
|
|
5,483 |
|
|
|
6,265 |
|
Derivative financial instruments |
|
|
288 |
|
|
|
349 |
|
|
|
856 |
|
Liquid investments |
|
|
274 |
|
|
|
401 |
|
|
|
391 |
|
Cash and cash equivalents |
|
|
6,467 |
|
|
|
5,148 |
|
|
|
5,623 |
|
Assets held for sale |
|
|
17 |
|
|
|
8 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
17,341 |
|
|
|
14,954 |
|
|
|
17,269 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
41,447 |
|
|
|
33,860 |
|
|
|
39,393 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
(1,886 |
) |
|
|
(1,387 |
) |
|
|
(956 |
) |
Trade and other payables |
|
|
(6,084 |
) |
|
|
(5,143 |
) |
|
|
(6,075 |
) |
Derivative financial instruments |
|
|
(241 |
) |
|
|
(195 |
) |
|
|
(752 |
) |
Current tax payable |
|
|
(1,179 |
) |
|
|
(1,058 |
) |
|
|
(780 |
) |
Short-term provisions |
|
|
(1,730 |
) |
|
|
(1,015 |
) |
|
|
(1,454 |
) |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
(11,120 |
) |
|
|
(8,798 |
) |
|
|
(10,017 |
) |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
|
(15,035 |
) |
|
|
(12,801 |
) |
|
|
(15,231 |
) |
Deferred tax liabilities |
|
|
(691 |
) |
|
|
(652 |
) |
|
|
(714 |
) |
Pensions and other post-employment benefits |
|
|
(3,335 |
) |
|
|
(2,312 |
) |
|
|
(3,039 |
) |
Other provisions |
|
|
(1,187 |
) |
|
|
(1,129 |
) |
|
|
(1,645 |
) |
Derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Other non-current liabilities |
|
|
(445 |
) |
|
|
(371 |
) |
|
|
(427 |
) |
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
|
(20,693 |
) |
|
|
(17,265 |
) |
|
|
(21,058 |
) |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
(31,813 |
) |
|
|
(26,063 |
) |
|
|
(31,075 |
) |
|
|
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
9,634 |
|
|
|
7,797 |
|
|
|
8,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
1,416 |
|
|
|
1,423 |
|
|
|
1,415 |
|
Share premium account |
|
|
1,344 |
|
|
|
1,322 |
|
|
|
1,326 |
|
Retained earnings |
|
|
5,701 |
|
|
|
4,099 |
|
|
|
4,622 |
|
Other reserves |
|
|
819 |
|
|
|
642 |
|
|
|
568 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
9,280 |
|
|
|
7,486 |
|
|
|
7,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests |
|
|
354 |
|
|
|
311 |
|
|
|
387 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
|
9,634 |
|
|
|
7,797 |
|
|
|
8,318 |
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
16
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Cash flow statement
Nine months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months |
|
|
9 months |
|
|
|
|
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
|
£m |
|
|
£m |
|
|
£m |
|
Profit after tax |
|
|
4,001 |
|
|
|
3,695 |
|
|
|
4,712 |
|
Tax on profits |
|
|
1,640 |
|
|
|
1,568 |
|
|
|
1,947 |
|
Share of after tax profits of associates and joint ventures |
|
|
(53 |
) |
|
|
(30 |
) |
|
|
(48 |
) |
Profit on disposal of interest in associates |
|
|
(115 |
) |
|
|
|
|
|
|
|
|
Net finance expense |
|
|
505 |
|
|
|
326 |
|
|
|
530 |
|
Depreciation and other non-cash items |
|
|
1,248 |
|
|
|
993 |
|
|
|
1,437 |
|
(Increase)/decrease in working capital |
|
|
(51 |
) |
|
|
(207 |
) |
|
|
69 |
|
(Decrease)/increase in other net liabilities |
|
|
(329 |
) |
|
|
133 |
|
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations |
|
|
6,846 |
|
|
|
6,478 |
|
|
|
9,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation paid |
|
|
(1,266 |
) |
|
|
(1,411 |
) |
|
|
(1,850 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash inflow from operating activities |
|
|
5,580 |
|
|
|
5,067 |
|
|
|
7,205 |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(972 |
) |
|
|
(938 |
) |
|
|
(1,437 |
) |
Proceeds from sale of property, plant and equipment |
|
|
26 |
|
|
|
14 |
|
|
|
20 |
|
Purchase of intangible assets |
|
|
(260 |
) |
|
|
(346 |
) |
|
|
(632 |
) |
Proceeds from sale of intangible assets |
|
|
346 |
|
|
|
170 |
|
|
|
171 |
|
Purchase of equity investments |
|
|
(117 |
) |
|
|
(53 |
) |
|
|
(87 |
) |
Proceeds from sale of equity investments |
|
|
25 |
|
|
|
32 |
|
|
|
42 |
|
Purchase of businesses, net of cash acquired |
|
|
(2,677 |
) |
|
|
(324 |
) |
|
|
(454 |
) |
Investment in associates and joint ventures |
|
|
(27 |
) |
|
|
(7 |
) |
|
|
(9 |
) |
Decrease in liquid investments |
|
|
84 |
|
|
|
802 |
|
|
|
905 |
|
Proceeds from disposal of interest in associates |
|
|
178 |
|
|
|
|
|
|
|
|
|
Interest received |
|
|
81 |
|
|
|
269 |
|
|
|
320 |
|
Dividends from associates and joint ventures |
|
|
11 |
|
|
|
9 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing activities |
|
|
(3,302 |
) |
|
|
(372 |
) |
|
|
(1,149 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from own shares for employee share options |
|
|
4 |
|
|
|
|
|
|
|
9 |
|
Shares acquired by ESOP Trusts |
|
|
(56 |
) |
|
|
(9 |
) |
|
|
(19 |
) |
Issue of share capital |
|
|
19 |
|
|
|
58 |
|
|
|
62 |
|
Purchase of own shares for cancellation |
|
|
|
|
|
|
(3,324 |
) |
|
|
(3,706 |
) |
Increase in long-term loans |
|
|
1,358 |
|
|
|
5,248 |
|
|
|
5,523 |
|
Net increase in/(repayment of) short-term loans |
|
|
148 |
|
|
|
(2,648 |
) |
|
|
(3,059 |
) |
Net repayment of obligations under finance leases |
|
|
(33 |
) |
|
|
(34 |
) |
|
|
(48 |
) |
Interest paid |
|
|
(390 |
) |
|
|
(324 |
) |
|
|
(730 |
) |
Dividends paid to shareholders |
|
|
(2,290 |
) |
|
|
(2,250 |
) |
|
|
(2,929 |
) |
Dividends paid to minority interests |
|
|
(85 |
) |
|
|
(69 |
) |
|
|
(79 |
) |
Other financing items |
|
|
(152 |
) |
|
|
(32 |
) |
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from financing activities |
|
|
(1,477 |
) |
|
|
(3,384 |
) |
|
|
(4,908 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and bank overdrafts in the period |
|
|
801 |
|
|
|
1,311 |
|
|
|
1,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange adjustments |
|
|
(152 |
) |
|
|
354 |
|
|
|
1,103 |
|
Cash and bank overdrafts at beginning of period |
|
|
5,472 |
|
|
|
3,221 |
|
|
|
3,221 |
|
|
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at end of period |
|
|
6,121 |
|
|
|
4,886 |
|
|
|
5,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and bank overdrafts at end of period comprise: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
6,467 |
|
|
|
5,148 |
|
|
|
5,623 |
|
Overdrafts |
|
|
(346 |
) |
|
|
(262 |
) |
|
|
(151 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,121 |
|
|
|
4,886 |
|
|
|
5,472 |
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
17
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Statement of changes in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
|
Share |
|
|
Retained |
|
|
Other |
|
|
Minority |
|
|
Total |
|
|
|
capital |
|
|
premium |
|
|
earnings |
|
|
reserves |
|
|
interests |
|
|
equity |
|
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
At 1st January 2009 |
|
|
1,415 |
|
|
|
1,326 |
|
|
|
4,622 |
|
|
|
568 |
|
|
|
387 |
|
|
|
8,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
3,457 |
|
|
|
81 |
|
|
|
62 |
|
|
|
3,600 |
|
Distributions to minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(85 |
) |
|
|
(85 |
) |
Changes in minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10 |
) |
|
|
(10 |
) |
Dividends to shareholders |
|
|
|
|
|
|
|
|
|
|
(2,290 |
) |
|
|
|
|
|
|
|
|
|
|
(2,290 |
) |
Shares issued |
|
|
1 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
Consideration received for shares
transferred by ESOP Trusts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
4 |
|
Shares acquired by ESOP Trusts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(56 |
) |
|
|
|
|
|
|
(56 |
) |
Write-down on shares held by ESOP Trusts |
|
|
|
|
|
|
|
|
|
|
(222 |
) |
|
|
222 |
|
|
|
|
|
|
|
|
|
Share-based incentive plans |
|
|
|
|
|
|
|
|
|
|
133 |
|
|
|
|
|
|
|
|
|
|
|
133 |
|
Tax on share-based incentive plans |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30th September 2009 |
|
|
1,416 |
|
|
|
1,344 |
|
|
|
5,701 |
|
|
|
819 |
|
|
|
354 |
|
|
|
9,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st January 2008 |
|
|
1,503 |
|
|
|
1,266 |
|
|
|
6,475 |
|
|
|
359 |
|
|
|
307 |
|
|
|
9,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
3,268 |
|
|
|
(31 |
) |
|
|
73 |
|
|
|
3,310 |
|
Distributions to minority shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(69 |
) |
|
|
(69 |
) |
Dividends to shareholders |
|
|
|
|
|
|
|
|
|
|
(2,250 |
) |
|
|
|
|
|
|
|
|
|
|
(2,250 |
) |
Shares issued |
|
|
2 |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58 |
|
Shares purchased for cancellation |
|
|
(82 |
) |
|
|
|
|
|
|
(3,339 |
) |
|
|
82 |
|
|
|
|
|
|
|
(3,339 |
) |
Shares acquired by ESOP Trusts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
|
|
|
|
|
(9 |
) |
Write-down on shares held by ESOP Trusts |
|
|
|
|
|
|
|
|
|
|
(241 |
) |
|
|
241 |
|
|
|
|
|
|
|
|
|
Share-based incentive plans |
|
|
|
|
|
|
|
|
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
183 |
|
Tax on share-based incentive plans |
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30th September 2008 |
|
|
1,423 |
|
|
|
1,322 |
|
|
|
4,099 |
|
|
|
642 |
|
|
|
311 |
|
|
|
7,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
18
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Segmental information
GSK has implemented IFRS 8 Operating segments with effect from 1st January
2009 and this has resulted in a change to the segmental information reported by
GSK. Comparative information has been presented on a consistent basis.
GSKs operating segments are being reported based on the financial information
provided to the Chief Executive Officer and the responsibilities of the
Corporate Executive Team (CET). Individual members of the CET are responsible
for geographic regions of the Pharmaceuticals business and for the Consumer
Healthcare business as a whole, respectively.
R&D investment is essential for the sustainability of the pharmaceutical
businesses. However, for segment reporting, the US, Europe, Emerging Markets
and Asia Pacific/Japan regional pharmaceutical operating profits exclude
allocations of globally funded R&D as well as central costs, principally
corporate functions and unallocated manufacturing costs. GSKs management
reporting process allocates intra-Group profit on a product sale to the market
in which that sale is recorded, and the profit analyses below have been
presented on that basis.
The Other trading pharmaceuticals segment includes Canada, Puerto Rico, Stiefel
products, central vaccine tender sales and contract manufacturing sales. The
Stiefel business is being integrated into GSK and with effect from 1st January
2010, results will be reported within the relevant geographical pharmaceuticals
segments,
in line with the way in which the business will be managed.
The Pharmaceuticals R&D segment is the responsibility of the Chairman, Research
& Development and is therefore being reported as a separate segment.
Unallocated pharmaceuticals costs include costs such as vaccines R&D and
central manufacturing costs not attributed to other segments.
Corporate and other unallocated costs and disposal profits include corporate
functions, costs for legal matters, fair value movements on financial
instruments and investments and unallocated profits on asset disposals.
Turnover by segment
Three months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2008 |
|
|
|
|
|
|
Q3 2009 |
|
|
(restated) |
|
|
Growth |
|
|
|
£m |
|
|
£m |
|
|
CER% |
|
US pharmaceuticals |
|
|
2,143 |
|
|
|
2,101 |
|
|
|
(12 |
) |
Europe pharmaceuticals |
|
|
1,734 |
|
|
|
1,563 |
|
|
|
3 |
|
Emerging Markets pharmaceuticals |
|
|
765 |
|
|
|
581 |
|
|
|
25 |
|
Asia Pacific/Japan pharmaceuticals |
|
|
643 |
|
|
|
464 |
|
|
|
13 |
|
Other trading pharmaceuticals |
|
|
308 |
|
|
|
179 |
|
|
|
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals turnover |
|
|
5,593 |
|
|
|
4,888 |
|
|
|
2 |
|
Consumer Healthcare turnover |
|
|
1,165 |
|
|
|
994 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,758 |
|
|
|
5,882 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
19
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Operating profit by segment
Three months ended 30th September 2009
Operating profit growth for the quarter in some segments has been impacted by
asset disposal profits in Q3 2008. Accordingly, the table below also shows
operating profit change excluding asset sale profits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding |
|
|
|
|
|
|
|
Q3 2008 |
|
|
|
|
|
|
asset sale |
|
|
|
Q3 2009 |
|
|
(restated) |
|
|
Growth |
|
|
profits |
|
|
|
£m |
|
|
£m |
|
|
CER% |
|
|
CER% |
|
US pharmaceuticals |
|
|
1,385 |
|
|
|
1,353 |
|
|
|
(11 |
) |
|
|
(12 |
) |
Europe pharmaceuticals |
|
|
1,040 |
|
|
|
903 |
|
|
|
4 |
|
|
|
4 |
|
Emerging Markets pharmaceuticals |
|
|
291 |
|
|
|
216 |
|
|
|
35 |
|
|
|
35 |
|
Asia Pacific/Japan pharmaceuticals |
|
|
333 |
|
|
|
259 |
|
|
|
|
|
|
|
5 |
|
Other trading pharmaceuticals |
|
|
113 |
|
|
|
88 |
|
|
|
15 |
|
|
|
|
|
Pharmaceuticals R&D |
|
|
(591 |
) |
|
|
(700 |
) |
|
|
(21 |
) |
|
|
|
|
Other unallocated pharmaceuticals costs |
|
|
(313 |
) |
|
|
(169 |
) |
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals operating profit |
|
|
2,258 |
|
|
|
1,950 |
|
|
|
1 |
|
|
|
1 |
|
Consumer Healthcare operating profit |
|
|
287 |
|
|
|
239 |
|
|
|
9 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating profit |
|
|
2,545 |
|
|
|
2,189 |
|
|
|
2 |
|
|
|
|
|
Corporate and other unallocated costs
and disposal profits |
|
|
(322 |
) |
|
|
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before major restructuring |
|
|
2,223 |
|
|
|
1,979 |
|
|
|
(3 |
) |
|
|
|
|
Major restructuring |
|
|
(152 |
) |
|
|
(322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit |
|
|
2,071 |
|
|
|
1,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
19 |
|
|
|
98 |
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
(199 |
) |
|
|
(218 |
) |
|
|
|
|
|
|
|
|
Share of after tax profits of associates
and joint ventures |
|
|
22 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
|
1,913 |
|
|
|
1,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US pharmaceuticals declined by 11%, broadly in line with the decline in turnover.
Emerging Markets pharmaceutical operating profits increased by 35% on a turnover increase of 25%.
Excluding the BMS and UCB product acquisitions turnover grew by 19% in the quarter.
Excluding asset sale profits, Japan and Asia Pacific operating profits increased 5% on a turnover
increase of 13%, reflecting declining gross profit margin due to product mix combined with
increased SG&A investment to support new product launches in Japan.
Pharmaceuticals R&D costs reduced by 21% in the quarter, essentially reflecting the settlement of
a royalty dispute and a provision release due to reassessment of a receivable balance in the
quarter. Excluding these items, Pharmaceutical R&D costs were £767 million (Q3 2008: £700
million) and were 1% lower in CER terms versus the previous year.
Other unallocated pharmaceuticals costs increased in 2009 principally due to higher centrally
held manufacturing costs and increased investment in vaccines R&D.
Consumer Healthcare operating profit increased 9%, broadly in line with a turnover increase of 8%.
Corporate and other unallocated costs primarily reflected higher pension costs and an £83 million
equity investment impairment in the quarter.
Issued: Wednesday, 28th October 2009, London, U.K.
20
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Turnover by segment
Nine months ended 30th September 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months 2008 |
|
|
|
|
|
|
9 months 2009 |
|
|
(restated) |
|
|
Growth |
|
|
|
£m |
|
|
£m |
|
|
CER% |
|
US pharmaceuticals |
|
|
6,730 |
|
|
|
6,368 |
|
|
|
(16 |
) |
Europe pharmaceuticals |
|
|
5,320 |
|
|
|
4,657 |
|
|
|
3 |
|
Emerging Markets pharmaceuticals |
|
|
2,146 |
|
|
|
1,613 |
|
|
|
19 |
|
Asia Pacific/Japan pharmaceuticals |
|
|
1,891 |
|
|
|
1,348 |
|
|
|
10 |
|
Other trading pharmaceuticals |
|
|
711 |
|
|
|
592 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals turnover |
|
|
16,798 |
|
|
|
14,578 |
|
|
|
(3 |
) |
Consumer Healthcare turnover |
|
|
3,476 |
|
|
|
2,864 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,274 |
|
|
|
17,442 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating profit by segment
Nine months ended 30th September 2009
Operating profit growth for the nine months in some segments has been impacted
by asset disposal profits, principally the disposal of Wellbutrin XL in 2009
and the disposal of four products to Aspen in 2008. Accordingly, the table
below also shows operating profit change excluding asset sale profits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding |
|
|
|
|
|
|
|
9 months 2008 |
|
|
|
|
|
|
asset sale |
|
|
|
9 months 2009 |
|
|
(restated) |
|
|
Growth |
|
|
profits |
|
|
|
£m |
|
|
£m |
|
|
CER% |
|
|
CER% |
|
US pharmaceuticals |
|
|
4,780 |
|
|
|
4,215 |
|
|
|
(12 |
) |
|
|
(17 |
) |
Europe pharmaceuticals |
|
|
3,090 |
|
|
|
2,702 |
|
|
|
2 |
|
|
|
5 |
|
Emerging Markets pharmaceuticals |
|
|
750 |
|
|
|
632 |
|
|
|
9 |
|
|
|
18 |
|
Asia Pacific/Japan pharmaceuticals |
|
|
998 |
|
|
|
767 |
|
|
|
(4 |
) |
|
|
4 |
|
Other trading pharmaceuticals |
|
|
338 |
|
|
|
338 |
|
|
|
(12 |
) |
|
|
|
|
Pharmaceuticals R&D |
|
|
(2,267 |
) |
|
|
(2,009 |
) |
|
|
(1 |
) |
|
|
|
|
Other unallocated pharmaceuticals costs |
|
|
(991 |
) |
|
|
(534 |
) |
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals operating profit |
|
|
6,698 |
|
|
|
6,111 |
|
|
|
(11 |
) |
|
|
(12 |
) |
Consumer Healthcare operating profit |
|
|
686 |
|
|
|
574 |
|
|
|
5 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating profit |
|
|
7,384 |
|
|
|
6,685 |
|
|
|
(9 |
) |
|
|
|
|
Corporate and other unallocated costs
and disposal profits |
|
|
(804 |
) |
|
|
(532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before major restructuring |
|
|
6,580 |
|
|
|
6,153 |
|
|
|
(13 |
) |
|
|
|
|
Major restructuring |
|
|
(602 |
) |
|
|
(594 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit |
|
|
5,978 |
|
|
|
5,559 |
|
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
65 |
|
|
|
276 |
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
(570 |
) |
|
|
(602 |
) |
|
|
|
|
|
|
|
|
Profit on disposal of interest in associate |
|
|
115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of after tax profits of associates
and joint ventures |
|
|
53 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
|
5,641 |
|
|
|
5,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
21
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
US pharmaceuticals turnover declined 16% which was only partly mitigated by reductions in operating costs.
Consequently operating profit excluding asset sale profits declined by 17%. Operating profit decreased
by
12% overall reflecting the benefit of higher asset sale profits this year.
Europe, Emerging Markets and Asia Pacific pharmaceutical operating profits were impacted by an adverse
comparison to last year where the 2008 profits included the disposal of products to Aspen.
Excluding asset sale profits, operating profit grew by 5% in Europe (slightly above turnover growth) and by
18% in Emerging Markets on a turnover increase of 19% reflecting increased SG&A investment to grow the
business.
Japan and
Asia Pacific profit increased 4% after excluding asset sale profits reflecting increased SG&A
investment to support new product launches in Japan and the adverse impact of a one-off pension gain
recorded last year.
Other unallocated pharmaceuticals costs increased in 2009 principally due to higher exchange losses of
£94 million (2008: £39 million gain) and higher centrally held manufacturing costs as well as increased
investment in vaccines R&D.
Consumer Healthcare turnover increased 7% but operating profits only increased by 5% reflecting increased
SG&A investment to grow the business.
Corporate and other unallocated costs increased due to higher legal costs, pension charges and equity
investment impairments in 2009.
Issued: Wednesday, 28th October 2009, London, U.K.
22
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Legal matters
The Group is involved in various legal and administrative proceedings principally product liability,
intellectual property, tax, anti-trust and governmental investigations and related private litigation
concerning sales, marketing and pricing which are more fully described in the Legal proceedings note in
the Annual Report 2008.
At 30th September 2009, the Groups aggregate provision for legal and other disputes (not including tax
matters described under Taxation on page 24) was £1.7 billion. The ultimate liability for legal claims
may vary from the amounts provided and is dependent upon the outcome of litigation proceedings,
investigations and possible settlement negotiations.
Significant developments since the date of the 2008 Annual Report (as previously updated by the Legal
matters section of the Results Announcements for Q1 and Q2 2009) are as follows:
With respect to litigation alleging that use of Paxil during pregnancy resulted in birth defects, the
first trial in the Philadelphia Mass Tort Program resulted in an adverse jury verdict on 13th October
2009, in the amount of
$2.5 million (Kilker v. GlaxoSmithKline). No punitive damages were awarded. The company plans to appeal.
On 16th October 2009, the Alabama Supreme Court issued an opinion reversing the $81 million jury verdict
entered against the Group last summer in the litigation in Alabama State Court relating to GSKs alleged
violations of federal and state fraud and abuse laws as a result of the way average wholesale price
(AWP) has been determined and reported for various drug reimbursements under the Medicaid programme. The
court found that the State of Alabamas Medicaid programme had not been defrauded and rendered judgement
in GSKs favour.
On 24th August 2009, the US Court of Appeals for the Second Circuit affirmed the District Courts
dismissal of an Avandia-related securities action (Borochoff).
GSKs motion to dismiss the amended complaint of the purported class of indirect purchasers was granted
in respect of some, but not all, class representatives in the Wellbutrin XL action filed in the US
District Court for the Eastern District of Pennsylvania against Biovail and GSK alleging unlawful
monopolisation and other antitrust violations related to the enforcement of Biovails Wellbutrin XL
patents and the filing by Biovail of citizen petitions. The ruling dismissed many of the putative class
representatives and many of the claims asserted by the indirect purchasers. The case will proceed to
discovery with respect to the remaining class representatives and claims of the purported class of direct
purchasers (pursuant to the courts denial of GSKs motion to dismiss such claims).
On 3rd August 2009, Novartis sued GSK in Belgium for patent infringement in relation to Hiberix, Infanrix
Hexa and Menitorix vaccine products and in relation to phase III development vaccine projects HibMenCY
and MenACWY, on a patent which purportedly covers a part of the manufacturing process for such vaccine
products. Parallel infringement proceedings were also filed by Novartis in the UK for Infanrix Hexa,
Menitorix and Hiberix. GSK has filed revocation actions against the patent with trials scheduled for
11th January 2010 in the UK and 23rd January and 28th January in Belgium. GSK has also commenced an
opposition proceeding against the Novartis patent at the European Patent Office (EPO), and at GSKs
request, the EPO has recently granted an accelerated review to reconsider the validity of the patent.
GSK will seek to revoke the patent in all member states in this accelerated review process, on the basis
that the patent is invalid and should not have been issued.
With respect to the matters relating to the Groups manufacturing operations in Cidra, Puerto Rico, on
30th July 2009, the Cidra site ceased operations and commenced decommissioning activities. On 6th
October 2009, the US District Court for the Eastern District of
North Carolina entered an order vacating
the Consent Decree.
On 8th October 2009, the Group filed an action in the US Federal District Court for the Southern District
of Florida seeking a declaratory judgement that US Patent 6,331,415 (the so-called Cabilly II patent)
which is owned by Genentech, Inc. and City of Hope, is invalid, unenforceable or not infringed by GSKs
product Arzerra (ofatumumab).
With respect to the Groups patent infringement action filed against Barr Laboratories (since acquired by
Teva) in the US District Court for the District of Delaware relating to the basic Avodart compound patent
(US 5,565,467) which expires in 2015, a hearing date of 23rd February 2010 has been set. FDA approval of
Barrs ANDA is stayed until the earlier of July 2010, or resolution of the patent infringement action.
Developments with respect to tax matters are described in Taxation on page 24.
Issued: Wednesday, 28th October 2009, London, U.K.
23
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Taxation
Transfer pricing and other issues are as previously described in the Taxation
note to the Financial Statements included in the Annual Report 2008. There
have been no material changes to tax matters since the publication
of the Annual Report.
GSK continues to believe that it has made adequate provision for the
liabilities likely to arise from open assessments. The ultimate liability for
such matters may vary from the amounts provided and is dependent upon the
outcome of litigation proceedings and negotiations with the relevant tax
authorities.
Additional information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid/ |
|
|
Pence per |
|
|
|
|
Dividends |
|
payable |
|
|
share |
|
|
£m |
|
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
First interim |
|
9th July 2009 |
|
|
14 |
|
|
|
701 |
|
Second interim |
|
8th October 2009 |
|
|
14 |
|
|
|
713 |
|
Third interim |
|
7th January 2010 |
|
|
15 |
|
|
|
761 |
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
First interim |
|
10th July 2008 |
|
|
13 |
|
|
|
683 |
|
Second interim |
|
9th October 2008 |
|
|
13 |
|
|
|
679 |
|
Third interim |
|
8th January 2009 |
|
|
14 |
|
|
|
730 |
|
Fourth interim |
|
9th April 2009 |
|
|
17 |
|
|
|
859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57 |
|
|
|
2,951 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2009 |
|
|
Q3 2008 |
|
|
|
|
|
|
|
millions |
|
|
millions |
|
Weighted average number of shares basic |
|
|
|
|
|
|
5,070 |
|
|
|
5,115 |
|
Dilutive effect of share options and share awards |
|
|
|
|
|
|
38 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares diluted |
|
|
|
|
|
|
5,108 |
|
|
|
5,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months |
|
|
9 months |
|
|
|
|
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
|
millions |
|
|
millions |
|
|
millions |
|
Weighted average number of shares basic |
|
|
5,068 |
|
|
|
5,234 |
|
|
|
5,195 |
|
Dilutive effect of share options and share awards |
|
|
39 |
|
|
|
34 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares diluted |
|
|
5,107 |
|
|
|
5,268 |
|
|
|
5,226 |
|
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
24
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Net assets
The book value of net assets increased by £1,316 million from £8,318 million at 31st December 2008 to
£9,634 million at 30th September 2009. This reflects an increase in net assets arising from operating
activities, partially offset by dividend payments and an increase in the pension deficit. The increase
in the pension deficit arose predominantly from an increase in the estimated long-term UK inflation rate
and a decrease in the rate used to discount UK pension liabilities from 6.20% to 5.50%, partly offset by
an increase in asset values.
At 30th September 2009, the net deficit on the Groups pension plans was £2,000 million compared with
£1,697 million at 31st December 2008.
The carrying value of investments in associates and joint ventures at 30th September 2009 was £511
million, with a market value of £1,118 million.
At 30th September 2009, the ESOP Trusts held 118.7 million GSK shares against the future exercise of
share options and share awards. The carrying value of £1,274 million has been deducted from other
reserves. The market value of these shares was £1,460 million.
GSK did not purchase any shares for cancellation in the period. At 30th September, the company held
474.2 million Treasury shares at a cost of £6,286 million, which has been deducted from retained earnings.
Capital expenditure
In the period to 30th September 2009 there were additions to property, plant and equipment of £958 million
(9 months 2008: £928 million) and additions to intangible assets of £212 million (9 months 2008: £346 million).
In the period to 30th September 2009 there were disposals of property, plant and equipment with a book value
of £35 million (9 months 2008: £30 million) and disposals of intangible assets with a book value of £nil
(9 months 2008: £nil).
Reconciliation of cash flow to movements in net debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months |
|
|
9 months |
|
|
|
|
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
|
£m |
|
|
£m |
|
|
£m |
|
Net debt at beginning of the period |
|
|
(10,173 |
) |
|
|
(6,039 |
) |
|
|
(6,039 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and bank overdrafts |
|
|
801 |
|
|
|
1,311 |
|
|
|
1,148 |
|
Cash inflow from liquid investments |
|
|
(84 |
) |
|
|
(802 |
) |
|
|
(905 |
) |
Net increase in long-term loans |
|
|
(1,358 |
) |
|
|
(5,248 |
) |
|
|
(5,523 |
) |
Net (increase in)/repayment of short-term loans |
|
|
(148 |
) |
|
|
2,648 |
|
|
|
3,059 |
|
Net repayment of obligations under finance leases |
|
|
33 |
|
|
|
34 |
|
|
|
48 |
|
Debt of subsidiary undertakings acquired |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
Exchange adjustments |
|
|
784 |
|
|
|
(502 |
) |
|
|
(1,918 |
) |
Other non-cash movements |
|
|
(31 |
) |
|
|
(41 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
Increase in net debt |
|
|
(7 |
) |
|
|
(2,600 |
) |
|
|
(4,134 |
) |
|
|
|
|
|
|
|
|
|
|
Net debt at end of the period |
|
|
(10,180 |
) |
|
|
(8,639 |
) |
|
|
(10,173 |
) |
|
|
|
|
|
|
|
|
|
|
Issued: Wednesday, 28th October 2009, London, U.K.
25
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Business acquisitions
On 22nd July 2009, the Group acquired all of the share capital of Stiefel
Laboratories Inc., the worlds largest private dermatological company for a
cash consideration of £1,992 million net of cash acquired and including £305
million of debt repaid on acquisition. The purchase price of £2,249 million
included £74 million of cash and cash equivalents, £1,295 million of intangible
assets, £1,140 million of goodwill, representing the potential for additional
growth from the combination of the Stiefel business and GSKs existing
dermatology portfolio, and £260 million of other net liabilities. The purchase
price includes potential obligations to make additional payments depending on
the future performance of the business. These are provisional valuations and
may change in the future. Stiefel Laboratories Inc. had a turnover of £414
million and a loss after tax (including restructuring costs) of £54 million for
the nine months to 30th September 2009, of which £111 million of turnover and
£29 million of loss after tax (including restructuring costs) related to the
period since acquisition and are included in the Group accounts.
Since acquisition, Stiefel made an operating profit of £15
million before restructuring costs and intangible assets amortisation.
The new business will provide significant opportunities for both sales and cost
synergies. Stiefels products will benefit from GSKs global distribution and
commercial organisations, particularly in markets such as Brazil, Russia,
India, China and Japan. GSKs products will benefit from Stiefels specialty
sales force relationships and experienced management in dermatology.
Cost synergies for the new business are expected primarily from combining
manufacturing and administrative functions. As previously reported, GSK
expects to deliver annual pre-tax cost savings of up to $240 million by 2012
with restructuring costs of approximately $325 million over the next three
years. Excluding restructuring costs, the Stiefel acquisition is
expected to result in a dilution of GSKs earnings per share of
less than 1% in 2009 and an improvement of 1-2% in 2010.
Related party transactions
The Groups significant related parties are its joint ventures and associates
as disclosed in the companys Annual Report 2008. In March 2009, 5,749,157
shares in the Groups associate, Quest Diagnostics Inc. were sold for a cash
consideration of £178 million, the majority of the shares being sold direct to
Quest Diagnostics Inc. with the remainder being sold in the market.
Apart from the above, there were no material transactions with any of the
Groups joint ventures and associates in the nine months ended 30th September
2009. There were no material transactions with directors.
Contingent liabilities
There were contingent liabilities at 30th September 2009 in respect of
guarantees and indemnities entered into as part of the ordinary course of the
Groups business. No material losses are expected to arise from such
contingent liabilities.
Issued: Wednesday, 28th October 2009, London, U.K.
26
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Exchange rates
The Group operates in many countries and earns revenues and incurs costs in
many currencies. The results of the Group, as reported in Sterling, are
affected by movements in exchange rates between Sterling and other currencies.
Average exchange rates, as modified by specific transaction rates for large
transactions, prevailing during the period are used to translate the results
and cash flows of overseas subsidiaries, associates and joint ventures into
Sterling. Period-end rates are used to translate the net assets of those
entities. The currencies which most influenced these translations and the
relevant exchange rates were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 months |
|
|
9 months |
|
|
31st December |
|
|
|
Q3 2009 |
|
|
Q3 2008 |
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
Average rates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£/US$ |
|
|
1.62 |
|
|
|
1.87 |
|
|
|
1.54 |
|
|
|
1.95 |
|
|
|
1.85 |
|
£/Euro |
|
|
1.14 |
|
|
|
1.27 |
|
|
|
1.12 |
|
|
|
1.29 |
|
|
|
1.26 |
|
£/Yen |
|
|
149 |
|
|
|
203 |
|
|
|
145 |
|
|
|
207 |
|
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end rates: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£/US$ |
|
|
1.60 |
|
|
|
1.78 |
|
|
|
1.60 |
|
|
|
1.78 |
|
|
|
1.44 |
|
£/Euro |
|
|
1.09 |
|
|
|
1.27 |
|
|
|
1.09 |
|
|
|
1.27 |
|
|
|
1.04 |
|
£/Yen |
|
|
143 |
|
|
|
189 |
|
|
|
143 |
|
|
|
189 |
|
|
|
131 |
|
During Q3 and 9 months 2009, average Sterling exchange rates were weaker
against the US Dollar, the Euro and the Yen compared with the same periods in
2008. Period end Sterling exchange rates were also weaker against all three
currencies compared with those at 30th September 2008.
Accounting presentation and policies
This unaudited Results Announcement containing condensed financial information
for the three and nine months ended 30th September 2009 is prepared in
accordance with the Disclosure and Transparency Rules of the United Kingdoms
Financial Services Authority, IAS 34 Interim Financial Reporting and the
accounting policies set out in the Annual Report 2008, except that GSK has
implemented IAS 1 (Revised) Presentation of financial statements, IAS 23
(Revised) Borrowing costs and IFRS 8 Operating segments with effect from
1st January 2009. The implementation of IFRS 8 has resulted in a change to the
segmental information reported by GSK, as described in Segmental information
on page 19. Comparative information has been presented on a consistent basis.
This Results Announcement does not constitute statutory accounts of the Group
within the meaning of sections 434(3) and 435(3) of the Companies Act 2006.
The balance sheet at 31st December 2008 has been derived from the full Group
accounts published in the Annual Report 2008, which has been delivered to the
Registrar of Companies and on which the report of the independent auditors was
unqualified and did not contain a statement under either section 237(2) or
section 237(3) of the Companies Act 1985.
Internet
This Announcement and other information about GSK are available on the
companys website at: http://www.gsk.com.
Issued: Wednesday, 28th October 2009, London, U.K.
27
|
|
|
PRESS |
|
|
RELEASE
|
|
![(PRESS RELEASE)](u07800u0780003.gif) |
Independent review report to GlaxoSmithKline plc
Introduction
We have been engaged by the company to review the condensed financial
information in the Results Announcement for the three and nine months ended
30th September 2009 which comprises the income statements and statements of
comprehensive income for the three and nine months ended 30th September 2009,
the balance sheet at 30th September 2009, statement of changes in equity, cash
flow statement and related notes (excluding the pharmaceuticals and vaccines
pipeline table) for the nine months ended
30th September 2009. We have read the other information contained in the
Results Announcement and considered whether it contains any apparent
misstatements or material inconsistencies with the information
in the condensed financial information.
Directors responsibilities
The Results Announcement is the responsibility of, and has been approved by,
the directors. The directors are responsible for preparing the Results
Announcement in accordance with the Disclosure and Transparency Rules of the
United Kingdoms Financial Services Authority.
The annual financial statements of the Group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed financial information
included in the Results Announcement has been prepared in accordance with
International Accounting Standard 34, Interim Financial Reporting, as adopted
by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
financial information in the Results Announcement based on our review. This
report, including the conclusion, has been prepared for and only for the
company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed financial information in the Results Announcement
for the three and nine months ended 30th September 2009 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdoms Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
28th October 2009
London
Notes:
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(a)
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The maintenance and integrity of the GlaxoSmithKline plc website is
the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes
that may have occurred to the condensed financial information since it
was initially presented on the website. |
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(b)
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Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in
other jurisdictions. |
Issued: Wednesday, 28th October 2009, London, U.K.
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